Chi­nese over­seas firms pay­ing chunks in taxes

China Daily (USA) - - ACROSS AMERICAS - By HONG XIAO and CHAR­LENE CAI in New York Con­tact the writ­ers at xi­ao­hong@chi­nadai­lyusa. com.

Chi­nese en­ter­prises are mak­ing progress on sus­tain­able de­vel­op­ment in their “go­ing out” over­seas — and pro­vid­ing host coun­tries with tax sup­port, ac­cord­ing to a re­port re­leased on Fri­day.

Chi­nese en­ter­prises over­seas paid $31.2 bil­lion in taxes to host coun­tries and re­gions in 2015, up 62.9 per­cent from 2014; for­eign em­ploy­ees num­bered 1.2 mil­lion — up by 392,000, said the 2015 Re­port on the Sus­tain­able De­vel­op­ment of Chi­nese En­ter­prises Over­seas, re­leased at United Na­tions head­quar­ters in New York.

The re­port was jointly pro­duced by the United Na­tions De­vel­op­ment Pro­gramme (UNDP), the Re­search Cen­ter of the State-owned As­sets Su­per­vi­sion and Ad­min­is­tra­tion Com­mis­sion of the Chi­nese State Coun­cil, and the Re­search In­sti­tute of the Chi­nese Min­istry of Com­merce.

More than 250 Chi­nese com­pa­nies that have over­sea in­vest­ment par­tic­i­pated in the sur­vey with ques­tion­naire cov­er­ing five main cat­e­gories in­clud­ing eco­nomic per­for­mance, en­vi­ron­men­tal im­pact and so­cial im­pact.

From Jan­uary to July, 2015, Chi­nese do­mes­tic in­vestors have made di­rect in­vest­ments in non­fi­nan­cial sec­tors in 5,465 over­seas en­ter­prises in 156 coun­tries and re­gions in the world, with a to­tal in­vest­ment of $102.75 bil­lion and year-on-year growth of 61.8 per­cent.

“This re­port an­a­lyz­ing the im­pact of Chi­nese over­seas busi­ness on sus­tain­abil­ity is sig­nif­i­cantly rel­e­vant to the in­ter­na­tional com­mu­nity,” said Xu Hao­liang, as­sis­tant sec­re­tary-gen­eral of United Na­tions, UNDP as­sis­tant ad­min­is­tra­tor and re­gional di­rec­tor of Asia and the Pa­cific.

“The com­mit­ment of Chi­nese com­pa­nies to con­tinue to im­prove their op­er­a­tions across the so­cial, en­vi­ron­men­tal and other ar­eas is en­cour­ag­ing news for global de­vel­op­ment. This ap­proach res­onates with the goal of United Na­tions,” he said.

Shen Haix­iong, chair­man of Guang­dong In­ter­na­tional Cul­tural As­so­ci­a­tion, said at the cer­e­mony that “the re­lease of the re­port is fit to Pres­i­dent Xi’s de­vel­op­ment vi­sion.”

At the Hangzhou G20 Sum­mit in Septem­ber, Pres­i­dent Xi Jin­ping ex­pressed that China hopes to work with all par­ties to build an in­no­va­tive, open, in­ter­linked and in­clu­sive world econ­omy, and to push the world econ­omy to a strong, sus­tain­able, bal­anced and in­clu­sive growth path.

Shen said con­tin­u­ing to im­prove the level of over­seas sus­tain­able de­vel­op­ment of Chi­nese en­ter­prises is the in­ter­na­tional com­mu­nity’s ex­pec­ta­tion.

In the course of “go­ing out”, Chi­nese en­ter­prises pay much at­ten­tion to sus­tain­able de­vel­op­ment by abid­ing by the law of the host coun­tries; tak­ing the ini­tia­tive to in­te­grate into lo­cal so­ci­eties; up­hold­ing the in­tegrity of man­age­ment; pro­tect­ing the eco­log­i­cal en­vi­ron­ment; safe­guard­ing the le­git­i­mate rights and in­ter­ests of em­ploy­ees; en­sur­ing the qual­ity of prod­ucts and ser­vices; ac­tively par­tic­i­pat­ing in com­mu­nity build­ing; and con­tribut­ing to the eco­nomic de­vel­op­ment and so­cial har­mony of the host coun­tries, he said.

Shen said many en­ter­prises from South China’s Guang­dong prov­ince have made suc­cess­ful in­ter­na­tional in­vest­ments in re­cent years.

Be­sides hav­ing achieved win-win co­op­er­a­tion with the host coun­tries, those en­ter­prises also have gained good rep­u­ta­tions.

For ex­am­ple, Huawei Tech­nolo­gies Co Ltd, a telecom­mu­ni­ca­tion equip­ment man­u­fac­tur­ing and ser­vices com­pany based in Shen­zhen, has com­peted glob­ally since its found­ing in 1987. Huawei has de­vel­oped into a multi­na­tional com­pany with op­er­a­tions in more than 170 coun­tries and re­gions.

“It could be re­garded as a good ex­am­ple of Chi­nese en­ter­prises’ over­seas sus­tain­able de­vel­op­ment,” Shen said.

“There are many more en­ter­prises in Guang­dong like Huawei, which adopt the con­cept of ‘open co­op­er­a­tion and win-win’ to in­te­grate into the de­vel­op­ment from all parts of the world,” he added.

Guang­dong, a key eco­nomic growth pole in China, is the place where China started its re­form and open­ing-up. It also is the strate­gic hub of the Belt and Road Ini­tia­tive and one of the start­ing points of the Mar­itime Silk Road.

“All state-owned en­ter­prises in China now have sus­tain­able plans when in­vest­ing over­seas,” said Lu Yongzhen, deputy di­rec­tor of the Re­search Cen­ter of the State-owned As­sets Su­per­vi­sion and Ad­min­is­tra­tion Com­mis­sion of the State Coun­cil.

CHAR­LENE CAI / CHINA DAILY

Shen Haix­iong (left), chair­man of Guang­dong In­ter­na­tional Cul­tural As­so­ci­a­tion, speaks at the launch event of the 2015 Re­port on the Sus­tain­able De­vel­op­ment of Chi­nese En­ter­prises Over­seas at the UN head­quar­ters in New York on Fri­day. Other speak­ers in­clude Xu Hao­liang (sec­ond from left), as­sis­tant sec­re­tary-gen­eral of UN; Luo Jin, min­is­ter coun­selor of China’s Per­ma­nent Mis­sion to the UN; and Lu Yongzhen, deputy di­rec­tor of the Re­search Cen­ter of the State-owned As­sets Su­per­vi­sion and Ad­min­is­tra­tion Com­mis­sion of the State Coun­cil.

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