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China cuts taxes in Shanghai FTZ to lure investment, undo trade war damage

The new preferential policies come as rising labour and land costs, along with higher US tariffs on Chinese goods, prompt some foreign firms to move their production facilities overseas

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People walk on the bund in front of the financial district of Pudong in Shanghai, China. Photo: Reuters

2 min read Last Updated : Aug 30 2019 | 1:18 PM IST

China said it would cut taxes and ease restrictions on cross-border money flows in the new free trade area in Shanghai, a move that will likely attract more foreign investment and help counteract some of the effects of the trade war.

The Lingang Special Area, part of the existing Shanghai free trade zone, will lower the tax some companies have to pay on revenue to 15% from 25% for 5 years and offer some income tax subsidies to workers that are in high demand, the Shanghai government said in a statement on Friday. The 50 measures announced also include easing restrictions

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