China cannot simply follow the U.S......>

CHINA PRESS: China cannot simply follow the U.S government tax cut with one of

its own, as the country needs strong fiscal support and should put operating

efficiency improvement of state-owned enterprises as the top priority, the

Securities Times reported Thursday. China needs to increase its productivity and

maintain low aggregate costs to compete with the U.S, the report said. The U.S

can issue government bonds to supplement fiscal shortages and transfer crises,

but China can not. Chinese companies need to improve their core competitiveness

and should not rely on a tax cut, the report noted. In practice, China has

reduced its taxes by replacing the business tax with a value-added tax (VAT) and

removing many administrative fees, the report argued. (Securities Times)