Sunday, February 28, 2010

Biz-news

Some news from Shanghai Business Review


10 foreign firms with tax arrears
The State Administration of Taxation (SAT) has asked ten large foreign enterprises to conduct tax self-examinations and pay any overdue taxes, including Nokia, Samsung, Motorola, Panasonic, Siemens, McDonalds, HSBC Bank, Foxconn Technology Group, General Electric, and Wal-Mart Investment Co. The self-examinations should cover subsidiaries at all levels of these companies, all items related to taxation and their status from 2006 to 2008. The move lasts from Dec 18 2009 to June 30, 2010. The ten companies should submit their final reports to the SAT before July 5, 2010, and send a duplicate to local tax authorities. Companies would have to pay overdue fines and forfeits if their self-examinations fail to pass SAT's further review.

Foreign investors: Go west
According to a Ministry of Commerce statement, China is encouraging more foreign investment in its central and western regions, developing local labour-intensive industries that meet environmental protection requirements. Foreign investment is also being directed to industries involving high-end manufacturing, new and high technology applications, modern services, new energy, and energy conservation and environmental protection. China is currently the world's second-largest FDI destination, up from sixth place in 2008.

Japanese carmakers hike capacity
Japanese car giants are increasing capacity in China to meet surging demand in the nation. Toyota's January production in China rose 204% to 67,337 vehicles, compared with a 157% increase to 98,183 vehicles in the United States. Hondas production in China rose 68% compared with a 39% rise in North America. Its local venture with Dongfeng Motor Group Co will invest RMB1.15bn (US$0.17bn) to build a second plant in China that will begin production in the second half of 2012. The Tokyo-based carmaker will also increase production capacity at the venture's existing plant in Hubei province to 240,000 vehicles this year, from 200,000. Mazda Motor Corp aims to sell 220,000 vehicles in China this year as its third-quarter vehicle sales rose 68% last year.


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