Leading entrepreneurs attending the ongoing session of the Chinese People’s Political Consultative Conference in Beijing called for stronger trade treaties, tax cuts and administrative streamlining to bolster development of the Chinese economy, especially the non-public sector, during a dialogue with leading officials and executives of the Ministry of Commerce, the State Administration of Taxation and the China Investment Corporation on March 7.
Stronger Go-global Policy Needed
Inner Mongolia Yili Industrial Group Co., Ltd. Chairman and President Pan Gang said that enterprises alone are unable to solve some of the difficulties as encountered by his company overseas in going global.
He suggested accelerating implementation of “facilitation of global trade and investment liberalization” as mentioned in this year’s Government Work Report on the governmental level through government-sponsored negotiations on and implementation of the trade rules with various countries to settle some of such difficulties, safeguard enterprises’ legitimate rights and interests and bolster their going global drive.
Some CPPCC members pointed out room for improvement in domestic tax policies to benefit go-global enterprises and stay consistent with China’s pro-go-global position.
Zongshen Industrial Group Co., Lt. Chairman and President Zuo Zongshen suggested amending the current government policy that taxes the part or entire income of Chinese enterprises not already waived in their overseas investment destinations when an agreement on mutual tax concession between China and investment destinations is not in place.
Taxes and Charges Reduction Vital to Survival
Entrepreneurs say they are greatly encouraged by the planned cuts of 350 billion yuan and 200 billion yuan on corporate taxes and charges respectively this year as mentioned in the Government Work Report, but some urged efficient and solid implementation of and pragmatic changes to current tax policies.
Evoc Intelligent Technology Group Co., Lt. Chairman Chen Zhilie said the tax refund policy in place for many years in China has its drawbacks, including long, laborious procedures and unwilling local governments, which actually in the end have prevented most private enterprises from enjoying tax waivers on military products and increased their corporate financial costs.
Chen suggested, in his sector for example, formulating a constantly-updated Tax-free Military Products Catalogue and applying an across-board tax-free policy for both the state-owned and non-state-owned enterprises, as a temporary solution.
Xingwei Group Chairman Wang Wei stressed that tax reduction for enterprises engaged in targeted poverty alleviation, the majority of which are in the midst of growth pattern change and structural upgrade, which greatly boost their morale, increase the participation of the impoverished population, and guide capital, technology and other resources to pour into poverty alleviation.
Big Battle for Administrative Streamlining and Power Devolution
Administrative streamlining and power devolution was placed on top of the agenda of the first Executive Meeting of the State Council in 2017 by Premier Li Keqiang.
It is agreed that the issue not only affects the development speed of private enterprises, but have a direct impact on their development direction.
Tianjin Datong Investment Group Co., Ltd. Chairman Li Zhantong underlined the equal importance of streamlining quality as quantity, saying that a more simple and convenient procedure, lower costs and greater satisfaction for the public and enterprises should be greatly considered.
Sanpower Group Chairman Yuan Yafei said that the top problem faced by private hospitals is the lack of large medical equipment, whose procurement needs the approval of the National Health and Family Planning Commission. He suggested formulation of state regulation in this field on the one hand and moderately loosening the ratification procedure on the other.
Proposals were also made on IPR protection, construction of the Internet of things and circulation in rural China, and regulation of the financial sector.