Foreign tax breaks to end

China is expected to end the special tax breaks for foreign investors that have been a hallmark of its economy and attracted nearly $700 billion in FDI since reform and opening, AP reported. Following complaints from Chinese companies regarding the unfair advantage, China's legislature is expected to end the special status for foreign investors at its annual session this week. After two decades the feeling is that China no longer needs to offer special incentive to attract foreign investment. The change is part of efforts to meet World Trade Organization commitments to treat companies equally. Despite the effort, however, tax collection ultimately relies on local authorities, and so it remains to be seen how effective implementation of the law will be. The National People's Congress will pass a raft of legislation during its annual session, which begins today and lasts two weeks.