Yuan seen to remain stable in long term
April 14, 2009
THE yuan may appreciate against the United States dollar over the short term but is more likely to remain stable in the long run, analysts said.
The Chinese currency dipped slightly against the greenback last week and ended at 6.8347 last Friday, according to the China Foreign Exchange Trade System. The yuan closed at 6.8320 by the end of the previous week.
The State Council, China’s Cabinet, last Wednesday picked Shanghai and four other cities in Guangdong Province to take part in a trial to settle overseas trade in the yuan rather than US dollars in a move to stabilize the trade and to build up the yuan’s position in the international monetary system.
“The trial settlement in yuan would favor the local currency and boost its appreciation in the short and middle terms,” according to a research note by Standard Charted.
Deng Xianhong, deputy head of the State Foreign Exchange Administration, last Friday said China “will move on with the trial of using yuan in overseas trade settlement and relax the cross-border financing restrictions to shore up support from foreign exchange to the economy.”
China’s exports last month fell by a slower pace of 17.1 percent from a year earlier to US$90.29 billion, the General Administration of Customs said last Friday.
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Overview of China’s Current Tax System
April 6, 2009
Tax is the most important source of fiscal revenue of China. It is also an important economic lever utilized by the State to strengthen macro-economic regulation, which produces important impacts on China’ s economic and social development. After the tax system reform in 1994 and the fine-tuning of it in subsequent years, China has preliminarily built up a tax system adaptable to the socialist market economy, which has been playing an important role in assuring China’s fiscal revenue, broadening the opening to the outside world and promoting the sustained, fast and healthy development of China’s national economy.
1. TYPE OF TAXES
Under the current tax system in China, there are 25 types of taxes, which, according to their nature and function, can be divided into the following 8 categories:
a) Category of turnover taxes. It includes 3 kinds of taxes, namely, Value – Added Tax, Consumption Tax and Business Tax. The levy of these taxes are normally based on the volume of turnover or sales of the taxpayers in the manufacturing, circulation or service sectors.
b) Category of income taxes. It includes Enterprise Income Tax (applicable to such domestic enterprises as state-owned enterprises, collectively-owned enterprises, private enterprises, joint operation enterprises and joint equity enterprises), Income Tax on Enterprises with Foreign Investment and Foreign Enterprises, and Individual Income Tax. These taxes are levied on the basis of the profits gained by producers or dealers, or the income earned by individuals.
c) Category of resource taxes. It consists of Resource Tax and Urban and Township Land Use Tax. These taxes are applicable to the exploiters engaged in natural resource exploitation or to the users of urban and township land. These taxes reflect the chargeable use of state-owned natural resources, and aim to adjust the different profits derived by taxpayers who have access to different availability of natural resources.
d) Category of taxes for special purposes. These taxes are City Maintenance and Construction Tax, Farmland Occupation Tax, Fixed Asset Investment Orientation Regulation Tax and Land Appreciation Tax. These taxes are levied on specific items for special regulative purposes.
e) Category of property taxes. It compasses House Property Tax, Urban real Estate Tax, and Inheritance Tax (not yet levied).
f) Category of behaviour taxes. It includes Vehicle and Vessel Usage Tax, Vehicle and Vessel Usage License Plate Tax, Stamp Tax, Deed Tax, Securities Exchange Tax (not yet levied), Slaughter Tax and Banquet Tax. These taxes are levied on specified behaviour.
g) Category of agricultural taxes. The taxes belonging to this category are Agriculture Tax (including Agriculture specialty Tax) and Animal Husbandry Tax which are levied on the enterprises, Units and/or individuals receiving income from agriculture and animal husbandry activities.
g) Category of customs duties. Customs Duties are imposed on the goods and articles imported into and exported out of the territory of the People’s Republic of China.
Source:Â Â Â Â Beijing Local Taxation Bureau
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China’s manganese ore imports in November 2008
December 31, 2008
China imported 440,000 tons of manganese ore valued at 224.604 million US dollars in November 2008. The import in January-November reached 7,080,000 tons valued at 3,263.230 million US dollars, up 19.9 percent and 197.1 percent respectively year on year.
Following is a table showing the import from 2004 to November 2008, released by the General Administration of Customs:
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