Khorgos highlights local policies can go awry

MORE THAN 100 FILM AND TELEVISION COMPANIES, including those owned by some big names in the circle, have reportedly applied to be deregistered in Khorgos in the Xinjiang Uygur autonomous region since June. Guangming Daily comments:

This wave of business exodus from the remote town, which is famous for its low tax, comes as the authorities are looking into the issue of tax evasion by entertainment celebrities, many of whom run companies registered in places such as Khorgos.

To promote the development of cultural industries, the central government has implemented some supportive policies to reduce the companies' tax and fee burdens. Yet, to turn the less-developed inland town into a business center in a short time, the government of Khorgos has meted out even more favorable policies, which has indeed brought thousands of companies to what has become a tax haven.