Local governments told to honor tax breaks, incentives granted to foreign firms

China’s State Council has announced that tax breaks and incentives already written into contracts with local governments and departments will be honored, The Wall Street Journal reported, citing a statement from the council’s website. Foreign business groups had expressed concern in recent months that a national campaign against excessive spending by local governments would undo agreed-upon benefits such as discounted land pricing and tax breaks, and complained that local governments were waiting for guidance from the central government. The council’s statement also said existing preferential policies without an end date needed to be “adjusted” without giving any details on what that might entail.