The move by the Chinese firm Fuyao Glass Industry Group to establish a manufacturing branch in the US has added more fuel to a long-running debate about the tax burden on the country's enterprises. Is the situation really as bad as entrepreneurs and investors claim?
SHANGHAI – A couple of weeks ago, an interview with the Chinese auto-glass tycoon Cao Dewang sparked a heated discussion across China. Cao explained that his recent $600 million investment to establish a US manufacturing branch for his company, Fuyao Glass Industry Group, was driven largely by China’s high taxes, which Cao claims are 35% higher for manufacturers in China than in the US. Has the tax burden on Chinese enterprises really reached economically lethal levels?
SHANGHAI – A couple of weeks ago, an interview with the Chinese auto-glass tycoon Cao Dewang sparked a heated discussion across China. Cao explained that his recent $600 million investment to establish a US manufacturing branch for his company, Fuyao Glass Industry Group, was driven largely by China’s high taxes, which Cao claims are 35% higher for manufacturers in China than in the US. Has the tax burden on Chinese enterprises really reached economically lethal levels?