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To: SeaViewer who wrote (25538)	3/13/2005 12:02:42 PM
From: RealMuLan	Respond to of 116555

It is a myth to claim that foreign companies cannot compete in China. And the matter of the fact is, many foreign companies have made tons of money in China, maybe not in their book, since they cook their books in order to evade taxes from the Chinese gov. And some of them made more money from China alone than from the rest of the world. Gov. handout will soon be the past in China. Foreign companies are not dumb. They would stop when they lose money. Look at the example of Carrefour in Japan, and compare with its business in China. "French retailer abandons Japanese market" businessweek.com

To: SeaViewer who wrote (25538)	3/13/2005 12:14:45 PM
From: RealMuLan	Read Replies (1) \| Respond to of 116555

BTW, at least Chinese gov. handout to their own SOEs can get back by (by a large amount) the twice as high income tax rate than for the foreign companies. And how many companies can make money when they have to pay twice as high income tax than others? Luckily, after 12 years of complaining from Chinese companies, the preferential treatment for foreign companies will be over soon. The corporation tax rate in China will be changed from the current 33% for Chinese companies and 15% for foreign companies into an uniform rate of 24% or so.