Over the past 20 years, contributions from foreign investments to China's economic development are obvious to all. They have not only introduced technologies and management experience and addressed some employment issues, but also accelerated China's integration into the global economy. But at the same time, China has paid a dear price for environment, land and tax receipts, and now even become a global focus on its trade surplus and raw materials demands.
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The recent tax reform in China, which unifies the tax rates between most foreign companies and Chinese companies at 25%, will no doubt help alleviating some unfair and illegitimate benefits received by foreign companies. But there is still considerable leeway for those offenders...
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