Is China Still Developing?
China has officially surpassed Japan to become the second largest economy of the world. No major world actions are taken without China taking part in the process. But still the tag of a developing country is used to describe China. Till when is a country considered to be Developing? Does the sheer size of the country’s population give it the unfair advantage of a developing nation forever? China has become the manufacturing hot spot for automobiles, toys, electronic goods, cell phones, laptops, etc. Apart from that, now thousands of Americans are going to China for jobs. The postcards that are being sent by these people do not say anything about the developing status of China. In fact it can be called as a developed country with problems associated with over explosion of population.
Recently China at the G77 developing nations conference suggested moves to curb climate change by forcing developed countries to give assistance to developing countries like China. The Chinese received a stern reply form United States who completely deny China still being a developing country. The United States have agreed to pay every other developing country except China, rightly so. Instead United States is urging China to invest in carbon caps in other developing nations.
China has one of the worlds largest GDP, but the same can not be said about its annual per capita income, which is around $2,500. This is 4 percent of what the GDP per capita is in United States. Hence the line between developed and developing country is badly drawn. Although million have been successfully lifted from poverty, still millions are left in the same hole. It can be termed as a process of non-trivial wealth. Hence unless the problem of developed or developing country is not solved, there seems to be no solution to the climate change agreements.
Posted in: Business
Even if you have to take out payday loans to pay for a trip, visiting China should be on everyone’s list of places to visit before they die. China is brimming with beautiful cultural and historical locations that simply cannot be passed up, many of which have been around for more than 1,000 years.
The most obvious historical place to visit is the Great Wall of China. You can’t honestly say that you are going to travel all the way to China without taking the time to go see the famous Great Wall. The 5,500 mile wall stretches from Shanhaiguan to Lop Nur and was originally built to defend the Chinese Empire’s northern border from various attackers. It’s well known that the Great Wall can even be see from space. Something this spectacular simply can’t be missed.
Another cultural attraction that cannot be skipped is the Forbidden City located in the heart of Beijing. This gigantic complex, consisting of approximately 980 buildings, served as the Chinese imperial palace from the Ming to the Qing Dynasties. There is also a lot of symbolism throughout the design of the complex. For example, the color of the tiles on the roof of each building represents something different. Yellow is the color of the Emperor, so many of the buildings have a yellow tiled roof.
Another place you can visit to learn more about the Chinese culture is Emperor Qin’s Terracotta Army. These magnificent soldiers were made and placed around Emperor Qin Shi Huang’s tomb so he would have an army to use in the afterlife. The tomb consists of over 8,000 figures, including horses, chariots, warriors, generals, and even acrobats and musicians. It’s simply breathtaking!
No matter where you decide to visit in China, you will be immersed in the magnificent culture and history of this ancient country.
Chinese Tax Breakdown
Every country has its own tax breakdown. China’s tax breakdown is a little different from the rest of the world, but it is still interesting to see how it is broken down for the second largest economy in the world.
An individual’s income tax is dependent on their level of income, and it ranges from 5% to 45%. Individuals are also responsible for a 20% tax on the interest or gain on investment they receive. This 20% is actually different from some other major countries where your tax bracket includes your income and your earnings on investment. You often end up paying one specific percentage.
The standard tax rate for both domestic and foreign companies stands at 25%. However, smaller companies and the small business sector can pay a 20% tax, depending on their industry. Some of the high tech companies actually pay a lesser rate of 15%, but again, that is based on the industry the company falls under.
Income from a business is not taxed the same way as income from a salary. Personal business income is taxed between 5% and 35%, depending on both the industry of business and the profit generated from the business.
Real estate is taxed at a much lower rate of 20% after deducting the purchase cost from the sale price.
These are just some of the tax breakdowns. With the proper accountant and proper paperwork, you stand to pay a better rate on both your income and your profit. Either way, this is quite different from several other countries that put tax rates at the same or similar percentage, regardless of profit and salary. These are a few of the tax laws to keep in mind when operating or working in China. The savings potential can be great, as long as you have the right tools and proper knowledge.