China’s ‘combat’ tax operations rattle firms already under pressure amid economic slowdown
- Reports in China on the opening of a series of joint task forces between police and tax authorities have rattled already weak business confidence
Media reports on the opening of a series of joint task forces between police and tax authorities have sent ripples across Chinese businesses, with lawyers saying such operations could send the wrong signal to the public amid weak confidence over China’s economic outlook.
A “combat” operations centre opened last month in Changzhi in central China’s Shanxi province, pledging to “safeguard national tax security”.
The move was seen by analysts as part of efforts to squash speculation that some regions might be looking to punish companies for overdue tax or misconduct amid mounting fiscal stress.
“Of course, it is reasonable that some entrepreneurs might be concerned,” Beijing-based lawyer Zhu Bao said.
“Largely because there are problems with the economy now and some might have experienced difficulties. So they are more sensitive to these [reports].”