China to Boost Outsourcing Industry

China will develop international outsourcing of high-value-added services to create new advantages in foreign trade, its cabinet said on Wednesday, according to the official government website.

The State Council will reduce corporate income taxes to 15 percent in a number of cities to encourage development of the high-tech, high value-added services outsourcing industry.

The goal is to move Chinese industry away from relying on low cost manufacturing to be globally competitive.

 
The effort will focus on developing software and IT services, research and development, finance, and government services, the State Council said.

China will trial a tax-free or zero value-added tax policy for international outsourcing services and provide various kinds of financial support and public financing. It will also cut red tape for dealing with foreign exchange.

Government departments also will pay for more services.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza