Feb 28, 2023 09:09 AM

CX Daily: China’s Tax System Gets a Digital Upgrade

China had over 150 million registered individual and corporate taxpayers by the end of 2021
China had over 150 million registered individual and corporate taxpayers by the end of 2021

Tax /

Cover Story: China’s tax system gets a digital upgrade

China is putting in place an expansive new system to overhaul its $2.4 trillion tax payment and collection system as part of a decades-long flagship project to digitalize the national network and increase scrutiny of evasion, bringing profound changes to the country’s filing practices.

Titled the Golden Tax System Phase IV, it is expected to be rolled out this year, connecting taxpayers, tax authorities and policymakers with a vast digital platform powered by big data, cloud computing and artificial intelligence technologies.

Investment banking /

Investment banker Bao Fan is aiding an investigation, China Renaissance says

China Renaissance Holdings Ltd. said its founder and chairman Bao Fan is assisting Chinese authorities in an investigation, more than a week after the investment bank lost contact with the billionaire dealmaker.

“The company has been trying to reach Bao and ascertain his status,” China Renaissance said Sunday in a filing with the Hong Kong stock exchange. “The board has become aware that Bao is currently cooperating in an investigation being carried out by certain authorities in China.” The Beijing-based enterprise didn’t give further details.

Corruption /

Ex-provincial vice governor indicted for bribery, leaking insider information

A former vice governor of Central China’s Hubei province, Cao Guangjing, was indicted on charges of bribery and leaking insider information, according to the Supreme People’s Procuratorate.

In a statement published Saturday, prosecutors accused Cao of taking advantage of his vice governor position and various executive posts at hydropower giant China Three Gorges Corp. (CTG) to seek benefits for others in exchange for a “particularly large” amount of money and valuables.


In 2022, the People’s Bank of China released more than $145 billion of long-term funds through two cuts in banks’ required reserve ratio. 

Central bank /

China’s central bank vows to balance growth and inflation

China’s central bank pledged to strike a balance between supporting growth and preventing inflation risks this year as it assesses the economy’s need for further stimulus amid a faster-than-expected recovery following the scrapping of Covid restrictions.

The People’s Bank of China (PBOC) will maintain a targeted, forceful and stable monetary policy to provide sustainable support for the real economy and refrain from using “flood-style” stimulus, the central bank said Friday in its quarterly monetary policy report.

China central bank completes trillion yuan profit transfer to Treasury

Buses /

China’s struggling bus operators highlight fiscal woes of local governments

A bus operator in a city in central China said it would suspend services due to mounting losses stemming from the pandemic and dwindling subsidies before rescinding the decision after the government stepped in, highlighting the fiscal headaches of local authorities nationwide.

The losses at Shangqiu Public Transportation Co. Ltd. were so severe that it couldn’t afford to pay salaries, social insurance contributions for its employees, electricity bills to charge its buses, or vehicle insurance, according to screenshots of an announcement from the company Thursday morning that made the rounds on social media.

Accounting /

‘Big Four’ accounting firms still favored by some China state firms

The “Big Four” global accounting brands remain the preferred choice of some major Chinese state-owned enterprises (SOEs) for their auditing work, but the government’s data security concerns could give homegrown rivals a chance to gain more market share.

Among the big SOEs is insurance giant China Taiping Insurance Group Ltd., which announced on Feb. 16 that PricewaterhouseCoopers Zhong Tian LLP (PwC China) had won a five-year audit contract with the company.

Quick hit /

China’s exports may recover in second half, economists predict


A worker unloads lithium raw material imports at a port in Shanghai on Jan. 28. Photo: VCG

Lithium /

Lithium prices tumble to 12-month lows

Lithium prices in China have fallen over 20% in the past two months after demand for the key electric-vehicle battery ingredient waned alongside sales of EVs.

The average spot price of lithium carbonate hit 392,500 yuan ($56,451) per ton Friday, down 23.1% year-to-date and 31% from its record high in November, according to data from iFinD, a market intelligence provider.

Electric cars /

Volkswagen-JAC venture unveils EV running on sodium-ion battery

Sihao, an electric vehicle (EV) brand of a joint venture between Volkswagen AG and Chinese automaker Anhui Jianghuai Automobile Group Corp. Ltd. (JAC), unveiled its first car powered by sodium-ion batteries, which it said will be produced at a lower cost than lithium-based power sources used in most EVs.

The experimental vehicle, which was revealed at an industry seminar last week, is equipped with a 25 kilowatt-hour sodium-ion battery pack capable of supporting a range of 252 kilometers on a single charge, said Hu Yongsheng, chairman of the car’s battery supplier HiNa Battery Technology Co. Ltd. A typical EV can travel around 500 kilometers on a full charge.

Quick hits /

China prepares to police AI as ChatGPT frenzy spreads

China approved enough new coal plants last year to power the U.K.

Long Read /

How China’s military gearheads are driving a new trend in toys


Breaking out gold medal moves


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