Increased Taxes

I'll repeat myself. This is a protectionist move by the Chinese government to force western companies to pay more taxes. The Chinese do not pay taxes, therefore, it does not promote fair competition.

China's State Council, or the cabinet, has announced regulations aimed at helping to enforce the country's new corporate income tax law. Premier Wen Jiabao has signed a State Council order to approve the promulgation of the regulations which were published on Tuesday. The regulations, to take effect on Jan. 1, 2008, replace two earlier regulations promulgated by the government more than a decade ago. It will be the first time since 1978 that China puts domestic and foreign firms on an equal footing in income taxation in an effort to promote fair competition.