US tax cut may bring mixed effect

Decrease could stimulate Chinese firms' appetite for overseas investment

The United States corporate tax reduction could provide an opportunity for Chinese companies to increase their market share and even become top leaders of their sectors in China, considering that their US competitors may adjust business strategies in China, EY experts said on Monday.

The Tax Cuts and Jobs Act, which has been signed into law by US President Donald Trump, will allow US companies to bring offshore profits home at greatly reduced tax rates.