Sunday, December 25, 2016

Why China should follow Trump’s example and cut taxes

Via Billy

Women work in a shirt factory in Nantong, in China’s Jiangsu province. China’s labour costs are no longer the advantage they once were. 

It’s time for the Chinese leadership to heed concerns of private sector.

The unorthodox foreign policy views of incoming US president Donald Trump may have unsettled Chinese leaders who are still trying to make sense of the billionaire’s true intentions. But the mainland’s obsession with Trump’s presidency is not just about politics or bilateral trade.

His domestic economic agenda, in which he champions tax cuts and deregulation to boost the economy and create jobs, has inadvertently fuelled an already intense debate in China over the state and direction of the Chinese economy.

More specifically, the issue is about how to help the manufacturing industries. Those industries once gained China a reputation as the world’s workshop and helped turn it into the world’s second largest economy, but are now weighed down by suffocating taxes and fees, soaring land prices and other operating costs.

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