China Economy: News & Discussion

[rockdog]

Question to our Chinese friends here- what is the income tax structure like in China? Is there any simplified document in English available?

enterprise or individual？

 

[Covfefe]

enterprise or individual？

Both

 

[helin]

The personal income tax structure in China for 2024 is as follows:
1. For resident individuals, the personal income tax rates are divided into seven tiers, ranging from 3% to 45%, depending on the taxpayer's annual taxable income. For example:
- Up to 36,000 yuan is taxed at a rate of 3%.
- From 36,001 yuan to 144,000 yuan is taxed at a rate of 10% with a quick deduction of 2,520 yuan.
- From 144,001 yuan to 300,000 yuan is taxed at a rate of 20% with a quick deduction of 16,920 yuan.
- From 300,001 yuan to 420,000 yuan is taxed at a rate of 25% with a quick deduction of 31,920 yuan.
- From 420,001 yuan to 660,000 yuan is taxed at a rate of 30% with a quick deduction of 52,920 yuan.
- From 660,001 yuan to 960,000 yuan is taxed at a rate of 35% with a quick deduction of 85,920 yuan.
- Over 960,000 yuan is taxed at a rate of 45% with a quick deduction of 181,920 yuan.
2. For non-resident individuals, the tax rates are different but also divided into seven tiers, ranging from 3% to 45%. For example:
- Up to 3,000 yuan is taxed at a rate of 3%.
- From 3,001 yuan to 12,000 yuan is taxed at a rate of 10% with a quick deduction of 210 yuan.
- From 12,001 yuan to 25,000 yuan is taxed at a rate of 20% with a quick deduction of 1,410 yuan.
- From 25,001 yuan to 35,000 yuan is taxed at a rate of 25% with a quick deduction of 2,660 yuan.
- From 35,001 yuan to 55,000 yuan is taxed at a rate of 30% with a quick deduction of 4,410 yuan.
- From 55,001 yuan to 80,000 yuan is taxed at a rate of 35% with a quick deduction of 7,160 yuan.
- Over 80,000 yuan is taxed at a rate of 45% with a quick deduction of 15,160 yuan.
In addition, resident individuals can deduct expenses of up to 60,000 yuan as well as special deductions, additional special deductions, and other legally determined deductions when calculating their taxable income. Non-resident individuals calculate their tax based on monthly income.
These details reflect the structure of personal income tax in China.
The corporate income tax structure in China for 2024 includes several main tax rates and preferential policies:
1. **Basic Tax Rate**: The basic corporate income tax rate is 25%.
2. **Small and Micro-enterprise Tax Rate**: Small and micro-enterprises with an annual taxable income of no more than 1 million yuan can apply a 25% reduction in taxable income and then pay corporate income tax at a rate of 20%. For parts of the annual taxable income exceeding 1 million yuan but not more than 3 million yuan, the same policy of a 25% reduction and 20% tax rate applies. This policy continues until December 31, 2027.
3. **Preferential Tax Rates for Specific Industries and Regions**:
- High-tech enterprises, advanced technology service enterprises, enterprises in the Pingtan Comprehensive Experimental Area, industries encouraged in the Hainan Free Trade Port, encouraged industries in the western region, industries in the Qiongzhou Strait Comprehensive Deepening Cooperation Zone, key industries in the Lingang New Area of the China (Shanghai) Pilot Free Trade Zone, and third-party pollution control enterprises can enjoy a preferential tax rate of 15%.
- Key integrated circuit design enterprises and software enterprises encouraged by the state can enjoy a preferential tax rate of 10% under specific conditions.
4. **Other Preferential Policies**: For example, for new equipment and instruments purchased from January 1, 2024, to December 31, 2027, with a unit value of no more than 5 million yuan, they can be deducted as current cost expenses in one go when calculating taxable income.
These details reflect the complex structure of corporate income tax and diverse preferential policies in China.

 

[rockdog]

Both

1. Enterprise

90% of Chinese enterprises economic activities, only covered by VAT.

And I can confirm the accuracy for most details of this table.

https://www.globalvatcompliance.com/vat-rates-in-china/

I m doing software services, which is 6%; and if i sell hardware to my client, it on the 13% table.

If those sales activities contains stuff i bought from 3rd party (downsteam), i would get Reduction of VAT, once i get the Faqiao (receipt issued by Tax Office) from such 3rd party.





2. Individual:
I can confirm the details here:

China, People's Republic of - Individual - Deductions

Detailed description of deductions for individual income tax purposes in the People's Republic of China

taxsummaries.pwc.com

Generally speaking, below $USD8500 of individual annual income, no income tax. higher than this, there will be progressive table：

Preferential Policies of IIT on Bonuses are Extended to December 2023

Premier Li Keqiang chaired an executive meeting of the State Council where it was decided to continue the implementation of some...

china.acclime.com

 

[Covfefe]

1. Enterprise

90% of Chinese enterprises economic activities, only covered by VAT.

And I can confirm the accuracy for most details of this table.

https://www.globalvatcompliance.com/vat-rates-in-china/

View attachment 258328


I m doing software services, which is 6%; and if i sell hardware to my client, it on the 13% table.

If those sales activities contains stuff i bought from 3rd party (downsteam), i would get Reduction of VAT, once i get the Faqiao (receipt issued by Tax Office) from such 3rd party.





2. Individual:
I can confirm the details here:

China, People's Republic of - Individual - Deductions

Detailed description of deductions for individual income tax purposes in the People's Republic of China

taxsummaries.pwc.com

View attachment 258329

Generally speaking, below $USD8500 of individual annual income, no income tax. higher than this, there will be progressive table：

Preferential Policies of IIT on Bonuses are Extended to December 2023

Premier Li Keqiang chaired an executive meeting of the State Council where it was decided to continue the implementation of some...

china.acclime.com

Thanks for sharing this!
Pretty lucrative tax structure for income levels. Standard deduction is pretty good, and the zero tax bracket is really low. That means a larger base to tax from (progressively higher)

Also, what kind of social security/ safety net programs are run by the national/ federal and state/ provincial governments? Food, housing, education, healthcare etc.

 

[rockdog]

Thanks for sharing this!
Pretty lucrative tax structure for income levels. Standard deduction is pretty good, and the zero tax bracket is really low. That means a larger base to tax from (progressively higher)

Also, what kind of social security/ safety net programs are run by the national/ federal and state/ provincial governments? Food, housing, education, healthcare etc.

Some details according to what i know during running my company:
1. Working in formal companies, government (around 70% of total working population), entity and employee has to deposite $USD150-250 per month to social/medical insurance system.

2. Once women has a baby, the female gets good amount money of "birth allowrence", in Shanghai case the amount is $USD4,000-6,000；2nd tier city is around $USD2,000-5,000

3. Jobless insurance is $300-400 per months, lasted 6 months.

4. In urban area, 75-90% of medical expense will be paid by government. In rural area, 60-95% will be paid by government.

Medical system is improved singnificantly in last 20 yrs, this is a tier 4 city's hostipal, an Indian student probation in it.

 

[SexyChineseLady]

What's the real size of China's economy? - Asia Times

(Big time) I'm on my way, I'm making it (Big time) (Big time) I've got to make it show, yeah (Big time) (Big time) So much larger than life (Big time) I'm

asiatimes.com

Items like imputed rent, legal fees and R&D are now all included in GDP. The UK went hog wild with both illegal drugs and prostitution as now part of their GDP because… hey, why not? UNSNA’s 2008 guidelines explicitly recommend that illegal market activity should be included in GDP.

China’s NBS stood its ground on a conceptual level. Rightly or wrongly, the Leninist MPS considers services necessary costs of material production rather than real value creation. In China’s first attempt at converting MPS to SNA in 1985, it tacked on a ludicrously low 13% to the MPS number and called it China’s services GDP.

...

China accounts for 20-40% of global demand for just about every consumer product but much of the services it consumes have been left out of national accounts.

So how much is it? How big is China’s economy really? About six months ago, this writer estimated that China’s GDP needed to be grossed up by 25-40% to be on a UNSNA basis.

 

[MiG-29SMT]

The EU raises tariffs on Chinese Electric Vehicles. US mulls new chip export restrictions. US sanctions Chinese firms helping Russia evade sanctions. Canada & the US raise the issue of Tibet. Is the West launching a coordinated attack on China's economy and diplomacy?

 

[MiG-29SMT]

Brazil joins race to loosen China's grip on rare earths industry

Commodities
Published 06/17/2024, 04:58 AM
Updated 06/17/2024, 12:51 PM

By Melanie Burton and Fabio Teixeira

MELBOURNE/RIO DE JANEIRO (Reuters) - Mining giant Brazil has big ambitions to build a rare earths industry as Western economies push to secure the metals needed for magnets used in green energy and defence and break China's dominance of the supply chain.

Working to its advantage are low labour costs, clean energy, established regulations and proximity to end markets, including Latin America's first magnet plant which would provide a ready buyer for the metals.

But low rare earths prices, technical challenges and nervous lenders pose challenges to the Latin American nation's hopes to propel itself into the world's top five rare earths producers.

The pace at which Brazil's rare earths projects come together will be a test for how successful the West may be at building a new advanced industry almost from scratch to break China's grip.

Brazil holds the world's third-largest rare earth reserves. The country's first rare earths mine, Serra Verde, started commercial production this year.

Output is set to grow, analysts, mining CEOs and investors say, supported by Western government incentives that are also accelerating a global rare earths refining and processing industry.

Brazil joins race to loosen China's grip on rare earths industry By Reuters

Brazil joins race to loosen China's grip on rare earths industry

www.investing.com

 

[MiG-29SMT]

Moral of the story China surpluses means they buy less from other countries; these other countries get mad since they need to protect their local economies, first protectionist economy is China.

Moral of the story 2 China pretends to be a victim when it is not

 

[MiG-29SMT]

China Economy: Housing Slump Deepens in May

 

[MiG-29SMT]

India says high tariffs on EVs to protect from Chinese imports
By Reuters
June 14, 20246:48 PM GMT+9Updated 4 days ago
NEW DELHI, June 14 (Reuters) - India's trade department said on Friday that the country's car market is "well-protected" through high tariffs on the import of electric vehicles, at a time when other major economies like the European Union have slapped tariffs on Chinese EVs.

https://www.reuters.com/business/autos-transportation/india-says-high-tariffs-evs-protect-chinese-imports-2024-06-14/

I like this truck

 

[helin]

What's the real size of China's economy? - Asia Times

(Big time) I'm on my way, I'm making it (Big time) (Big time) I've got to make it show, yeah (Big time) (Big time) So much larger than life (Big time) I'm

asiatimes.com

Items like imputed rent, legal fees and R&D are now all included in GDP. The UK went hog wild with both illegal drugs and prostitution as now part of their GDP because… hey, why not? UNSNA’s 2008 guidelines explicitly recommend that illegal market activity should be included in GDP.

China’s NBS stood its ground on a conceptual level. Rightly or wrongly, the Leninist MPS considers services necessary costs of material production rather than real value creation. In China’s first attempt at converting MPS to SNA in 1985, it tacked on a ludicrously low 13% to the MPS number and called it China’s services GDP.

...

China accounts for 20-40% of global demand for just about every consumer product but much of the services it consumes have been left out of national accounts.

So how much is it? How big is China’s economy really? About six months ago, this writer estimated that China’s GDP needed to be grossed up by 25-40% to be on a UNSNA basis.

“China’s PPP GDP is only 25% larger than that of the US? Come on people… who are we kidding? Last year, China generated twice as much electricity as the US, produced 12.6 times as much steel and 22 times as much cement. China’s shipyards accounted for over 50% of the world’s output while US production was negligible. In 2023, China produced 30.2 million vehicles, almost three times more than the 10.6 million made in the US. ”

“Over the years, the World Bank has twisted the arm of the NBS for modest increases to China’s services GDP – with limited success. ”

It's an interesting analysis,

 

[rockdog]

Biggest infrascture in Brazil obtained by China State grid!



Brazil's Largest Infrastructure Power Transmission Project Secured by China

China and Brazil have sealed a 30-year franchise agreement for the Brazil northeast ultra-high-voltage direct current (UHVDC) power transmission line project. The signing ceremony, attended by dignitaries including Chinese Ambassador to Brazil Zhu Qingqiao and Brazil's Minister of Mines and Energy Alexandre Silveira, marks a significant step towards fostering clean and low-carbon energy transformation on a national scale.

https://www.powersystems.technology/news-pst/us-news/brazil-s-largest-infrastructure-power-transmission-project-secured-by-china.html

China to build 1,468km transmission line in Brazil

China and Brazil last week signed a 30-year franchise agreement for a new, 1,468km high-voltage transmission line to bring renewable power from Brazil’s remote northeast to the more populated centre of the country.

China to build 1,468km transmission line in Brazil - Global Construction Review

China and Brazil last week signed a 30-year franchise agreement for a new, 1,468km high-voltage transmission line to bring renewable power from Brazil’s remote northeast to the more populated centre of the country.

www.globalconstructionreview.com

China's UHVDC tech is perfect for Brazil!

 

[helin]

China's UHVDC tech is perfect for Brazil!

The same goes for nuclear power

US as many as 15 years behind China on nuclear power, report says


WASHINGTON, June 17 (Reuters) - The U.S. is as many as 15 years behind China on developing high-tech nuclear power as Beijing's state-backed technology approach and extensive financing give it the edge, a report said on Monday.
China has 27 nuclear reactors under construction with average construction timelines of about seven years, far faster than other countries, said the study by Information Technology & Innovation Foundation, a Washington-based nonpartisan research institute.

"China’s rapid deployment of ever-more modern nuclear power plants over time produces significant scale economies and learning-by-doing effects, and this suggests that Chinese enterprises will gain an advantage at incremental innovation in this sector going forward," the report said.
The U.S. has the world's largest fleet of nuclear power plants and President Joe Biden's administration considers the virtually emissions-free electricity source to be critical in curbing climate change.
Advertisement · Scroll to continue

But after two large plants in Georgia came online in 2023 and 2024 billions of dollars over budget and delayed by years, no U.S. nuclear reactors are being built. A high-tech plant that had been planned to be built at a U.S. lab was canceled last year.
China's state-owned banks can offer loans as low as 1.4%, far lower than available in Western economies. Its nuclear power industry has benefited from sustained state support and localization strategies that has allowed China to dominate sectors like renewable power and EVs.



The world's first so-called fourth-generation high-temperature gas cooled reactor at Shidao Bay came online last December. The China Nuclear Energy Association claims that the project involved the development of more than 2,200 sets of "world-first equipment" with a total localization rate of domestically produced materials of 93.4%.
Backers of high-tech reactors say they are safer and more efficient than current plants. Critics say some new reactors introduce proliferation and material risks.

 

[helin]

High-speed maglev construction technology at 600 kilometers per hour is moving towards engineering application

According to the Science and Technology Daily (reporter Wu Chunxin, correspondent Zhang Qishan), "We have basically mastered the key technologies for constructing 600 km/h high-speed superconducting maglev transportation engineering." Recently, Wen Wongqing, Deputy Chief Engineer of the Fourth Survey and Design Institute of China Railway (hereinafter referred to as the Fourth Railway Institute), told reporters that the major research project undertaken by their institute, led by the China Railway Shenzen Institute, has been successfully completed. The project has formed a series of proprietary intellectual properties and guiding design principles in the field of key technologies for constructing high-speed superconducting maglev, making a big step towards engineering application.

Maglev transportation is a new technology that emerged after 100 years of development of traditional railway transportation. This technology reconstructs the interaction between the train and the track in a non-contact manner, breaking through the speed limit of traditional ground transportation tools.

The maglev technology is based on the principle of "like-pole repulsion and unlike-pole attraction" in electromagnetic levitation. Magnets are used to counteract gravity to make the vehicle levitate, and then electromagnetic force is used to guide and propel the train forward. Since the 1960s, major developed countries such as Germany and Japan have carried out large-scale research on maglev transportation.

The technical route of maglev transportation can be divided into high-speed superconducting maglev and high-speed normal-conducting maglev. Wen Wongqing introduced that high-speed normal-conducting maglev can realize levitation through electromagnetic attraction. Specifically, it uses the electromagnetic attraction between electromagnetic coils and good conductive magnetic materials, and achieves non-contact levitation between the train and the track through automatic closed-loop control. High-speed superconducting maglev, on the other hand, utilizes the diamagnetism of superconductors to achieve magnetic levitation. Superconducting magnets generate a strong magnetic field at low temperatures, which interacts with the coils on the track to produce electromagnetic repulsive force to lift the train.

In the 1990s, China began to research the maglev and wheel-rail technology solutions for the Beijing-Shanghai high-speed rail in parallel. Zeng Min, Deputy Chief Engineer of the Bridge Institute of the Fourth Railway Institute, said that this research on the key technologies for constructing 600 km/h high-speed normal-conducting maglev has filled the gaps in the existing high-speed normal-conducting maglev in terms of proprietary intellectual property, industrial chain system, and engineering applicability.

The project team conducted systematic research in 7 key technical areas around the construction of a high-speed normal-conducting maglev trunk line, and conducted targeted analysis and layout of patents for the 600 km/h high-speed normal-conducting maglev construction technology. After 4 years of effort, the project has achieved 70 patents, 4 products, 3 construction methods, 2 processes, 5 technical specifications, and 1 software copyright.

Meanwhile, the project team also invented an integrated track beam structure suitable for full coverage of bridges, tunnels and stations, developed high-precision multi-directional infinitely adjustable supports to ensure the precision requirements of construction and maintenance, and innovatively designed specialized equipment for the construction and maintenance of high-speed normal-conducting maglev, in order to improve construction efficiency and reduce maintenance difficulty.

Zeng Min introduced that the research results of this project have been successfully applied to some engineering projects.

 

[rockdog]

Intel invests in Luxshare subsidiary in China

Intel invests in Luxshare subsidiary in China

Intel invested in China-based Dongguan Luxshare Technology, a subsidiary of Luxshare Precision, amid deepening Intel-Luxshare ties as demands for high-speed interconnect products rise with servers.

www.digitimes.com

Intel China Buys Into Unit of Apple Supplier Luxshare to Ally in Communications

Intel China Buys Into Unit of Apple Supplier Luxshare to Ally in Communications

www.yicaiglobal.com

 

[Azaad]

 

[rockdog]

meanwhile in Kashgar...

 

[Azaad]

meanwhile in Kashgar...

View attachment 258497
View attachment 258499

In the event you didn't deny what's happening in Xinjiang.