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Foreign companies should cope with changing environment

By Hao Yan (chinadaily.com.cn)
Updated: 2010-11-19 17:34

Foreign businesses in China should stop complaining about China's investment policy adjustments and review their manner of positioning, investing and operating, to seize future development opportunities, a signed article by the Xinhua News Agency said on Thursday.

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China will begin to collect city maintenance and construction tax and additional education fees from foreign funded businesses and foreign individuals starting next month.

The country's move will end the super national treatment of foreign investment and make foreign businesses compete with local ones at the same taxation cost basis, the article said.

Although 90 percent of the surveyed United States companies had higher, or at least equal, profits in China than in other parts of the world, the companies said China's investment and operation environment is "becoming unfriendly", according to a US-China Business Council's Wednesday report.

Foreign businesses are operating at a lower cost thanks to redundant privileges, compared with their local rivals, said the news agency, citing research reports.

The article also called on foreign businesses to cope with the changing investment environment while the county is accelerating the transformation of its the economic growth model.