China Considers Tax Breaks for Manufacturers as Economy Cools

May 29, 2023, 6:30 AM UTC

China is considering new tax incentives for high-end manufacturing companies, according to a person familiar with the matter, as Beijing seeks to bolster the economy and encourage more innovation in technology to counter US competition.

The tax policy being considered could save advanced manufacturers hundreds of billions of yuan, said the person, who asked not to be identified because the information isn’t public. The plan is still subject to approval and could undergo changes, the person said.

China’s post-Covid economic rebound is losing momentum, with latest data showing exports and investment weakening across the board, a recovery in the ...

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