Local Enterprise Seek Common Benefit with Overseas Counterparts

On July 20th, a signing ceremony between Setcore Group, Egypt represented by Mr. Tamer Nassar-Chairman of Group and the World Trade & Commerce Center, Dongyang-China represented by Mr. Jiang Yuejin-Mayor of Dongyang City was held at the Marriott Hotel in Zamalek-Cairo. This was win-win cooperation and exerted great significances on both sides. In this event, they exchange ideas on the economic issues of common concerned and signed a memorandum of understanding as well.

Domestic Market Demand and Core Competitiveness of Local Enterprises: Promotion or Inhibition?

Under the background of China's accelerating high-quality development,whether expanding domestic demand can promote the improvement of the core competitiveness of local enterprises is still lacking support of theoretical and empirical evidence.Using micro-data at the level of Chinese industrial enterprises,this paper empirically examines the impact mechanism and effect of domestic market demand on the enhancement of local enterprises'core competitiveness.The research shows the following three findings.First,domestic market demand will help local enterprises to increase investment in R&D and design and brand marketing,so as to promote value-added activities to shift from tangible activities in production to intangible activities before and after production,thereby improving their own core competitiveness.Second,further deconstructing market competition factors from the perspective of ownership shows that,driven by domestic market demand,non-state-owned enterprises can enhance their core competitiveness better than state-owned enterprises.Third,China's regional industrial distribution and development have the typical echelon characteristics,which leads to the geographical heterogeneity of the promotion effect of domestic market demand on the local enterprises to enhance their core competitiveness,showing a ladder-type declining trend from the east to the middle and then to the west.These findings provide a useful decision-making reference for better implementation of the strategy of expanding domestic demand under the background of accelerating the construction of a new developmentpattern.

Preferential Policy and Tax Regulations Income Tax of Enterprises and Local Income Tax

*Newly-built joint ventures engaged in new and high technological enterprises shall enjoy a 15 percent reduction of income tax for two years, or a 24 percent reduction for two years and a 50 percent reduction in the following three years. A choice between the two may be decided by the said enterprises. **Service industry, those enterprises with a foreign capital of more than US$5 million shall be exempt from the tax

“Assahlahmu Alaykum...”

Lured by the exoticism of frontier towns and an untouched market, enterprising foreigners head west on China’s Silk Road.

Local fiscal distress and investment efficiency of local SOEs

In this paper, we use A-share listed firms between 2002 and 2010 to investigate the relationship between local fiscal distress and the investment efficiency of local SOEs, along with the effect of corporate tax payments on this relationship. We find a positive relationship between the extent of local SOEs' overinvestment and the fiscal distress of the corresponding local government where the enterprise and this relationship become stronger for firms that pay fewer taxes. The pattern of underinvestment among local SOEs was in contrast,and these relationships do not exist for non-SOEs or central SOEs. Moreover,we find that expanding a firm's investment scale leads to an increase in total taxes paid, including income and turnover taxes, which further result in more local fiscal revenue. Overall, we conclude that local governments have an incentive to increase fiscal revenue when faced with fiscal distress by raising the investment scale of local SOEs and that the incentives and effects of such interventions appear to be stronger among firms that contribute less to local fiscal revenue.ó 2013 Production and hosting by Elsevier B.V. on behalf of China Journal of Accounting Research. Founded by Sun Yat-sen University and City University of Hong Kong.