Revisit operations to prepare for tax policy shifts

Foreign investors in certain industries should reassess their manufacturing operations and supply chains to be adequately prepared for policy changes and to save on taxes, say counsel.

The advice comes after it was announced that China's Ministry of Commerce (MOC) would decrease certain industries' export tax rebates. In particular, the government is targeting those manufacturing sectors that have a high pollution rate, are damaging to the environment, and heavily resources-reliant. These include the steel, paper, textile and apparel manufacturing industries.

The industries that are expected to benefit from the rate adjustments are high technology, information technology, bio-technology and others that contribute to the government's central policies of saving energy and developing a technological edge.