Trump has said to us manufacturing (including footwear) tax rate from 35% to 15%. The war between China and the United States has opened the curtain on the battle for manufacturing. Where should we go?
Source: First Finance (excerpt) / reporter Chen Yikan Chen Shanshan Qian Tongxin

"The comprehensive tax of China's manufacturing industry is 35% higher than that of the United States."

A member of the CPPCC National Committee, Fuyao Group Chairman Cao Dewang recently accepted the first financial reporter to interview the statement triggered widespread concern. Cao Dewang had previously disclosed that a planned investment of $1 billion was built in the United States.

For a time, the operating costs of Sino US dispute shuabing.


President elect Trump not only continued Obama's "manufacturing backflow" plan, but also prepared to attract more manufacturing companies to invest in the us through drastically lowering taxes and other measures.

In the future of China's policy measures to revitalize the real economy, some experts interviewed by the first financial reporters said:

2017's most anticipated tax cuts is the merger of the four file VAT rate, thereby reducing the manufacturing VAT rate of 17%; the combination of comprehensive and classification of personal income tax reform will reduce the tax burden low-income persons; in addition to the need to continue to vigorously clean up all kinds of unreasonable fees, reduce the old-age insurance, medical insurance payment rate low income groups and labor, reduce the social security burden on enterprises; enterprises can further reduce the cost of logistics and.

Cao Dewang's words shrouded the manufacturing industry

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Cao Dewang said that the overall cost of China's manufacturing industry is high, and the enterprise has the deepest experience.

Wahaha Group Chairman Zong Qinghou 14, said at a forum on the current economic entity: do too difficult, the high cost of investment, countries should continue to implement the proactive fiscal policy, reduce the corporate tax, "a country without the real economy, the country to prosperity, I don't think it possible."

Pan Gang, the chairman of Yili, also wrote: "the real economic operation of the entity economy is not difficult. The comprehensive operation cost of raw materials, labor and other enterprises has increased significantly.

In addition to the statement of famous entrepreneurs, many manufacturing enterprises, which have grown up at home, have already been put into action.

Li Changjie said that in the United States, it will cost about 110 million dollars to build a factory, which may only cost 60 million dollars in the country, but after many factories are put into operation, many cost elements are even cheaper than the domestic ones.

They set up factories in the United States simply: Trump has said the U.S. manufacturing tax rate from 35% to 15%.

30%~40%'s "death rate"

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Entrepreneurs feel the most true, and the tax burden is still heavy.

In the first half of the year, Li Weiguang led the research group on the tax and fee burdens of private entrepreneurs, with more than 100 entrepreneurs. The preliminary results show that entrepreneurs think the heavy and heavy tax burden is high, up to 87%.

Li Weiguang said that at present, the macro tax burden of 30%~40% is too high for enterprises, and can even be called "death rate". Because most enterprises in China have less than 10% profit margins. The tax burden of 30%~40% will cause most of the eastern coastal processing enterprises to be in trouble, or even go bankrupt.

China also has to reduce the tax rate of the manufacturing industry

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In July 26th this year, the Political Bureau of the Central Committee of the Communist Party of China held a meeting for the first time to "reduce the macro tax burden", which was different from the previous statement of stabilizing the macro tax burden. Xu Shanda, the former deputy director general of the State Administration of Taxation, believes that this is a major adjustment of the fiscal and tax strategy.

The central economic work conference, which ended last Friday, also stressed that in 2017, the efforts should be made to reduce taxes, reduce costs and reduce factor costs.

Premier Li Keqiang recently hosted a standing meeting of the State Council to make it clear that a large-scale tax reduction policy will continue to be implemented in 2017.

Reducing the value-added tax rate of 17% of the manufacturing sector through the VAT tax rate is an expected move to reduce costs in 2017.

At present, the value-added tax rate has 17%, 13%, 11% and 6%4 files, and the tax rate is too high. In practice, different business tax rates apply to similar businesses, which is not conducive to fair competition.

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