Huang Huahua, governor of South China's Guangdong Province:
The new tax law will benefit the province in the long term. It will help us
to update our economic structure and improve the level of foreign investment in
the country by granting some preferential terms to high-tech industries. It will
also lead the direction of industrial development in the province.
Cheng Mingming, chairman of board of the
foreign-funded Shanghai Cheng Mingming Cosmetics Co Ltd: 
The tax will improve the market transparency, as there won't be many
complicated differentiations in counting income tax. But I think the 25 percent
income tax is a little bit high for foreign companies.
Mei Xinyu, researcher from the Chinese Academy of International Trade and
Economic Cooperation attached to the Ministry of Commerce:
The existing tax preferential treatment has caused many problems. It, for
example, has caused capital outflows, which then come back in the disguise of
foreign capital to take advantage of the tax breaks.
(China Daily 03/09/2007 page6)
