Tax Debate.docVIP

Tax Debate 　　Compared to the United States， China’s manufacturing industry is overtaxed and costs too much， said Cao Dewang， President of China’s auto-glass titan Fuyao Group （FG）， in an interview with Shanghai-based Y. 　　The statement was made in late November 2016， nearly two months after FG invested $600 million in the U.S. state of Ohio to build the world’s largest glass production plant. The investment is the largest in Ohio and the eighth highest in the United States by a company from China in recent decades. 　　Cao’s comment sparked a month-long controversy on China’s tax system and roused concerns over the prospects for the country’s real economy. Some commentators worry that Cao is “escaping” China and the country’s manufacturing sector is shifting overseas. These fears are partly driven by allegedly heavy taxes in China and partly by U.S. President-elect Donald Trump’s promise to cut taxes and “bring manufacturing jobs back to the United States.” 　　But Cao later clarified that he is “not leaving China，” and that his investment in the United States does not seek to take advantage of Trump’s vow， rather it is “the only way to be a multinational company.” 　　At a regular press briefing on December 23， 2016， Shen Danyang， spokesman of the Ministry of Commerce （MOFCOM）， refused to comment on Cao’s statement， saying some Chinese manufacturers are mired in difficulties partly caused by continuously rising costs in the country. 　　In fact， FG is not the only Chinese manufacturer to go global. The latest data from the MOFCOM suggests that outbound direct investment in manufacturing made by Chinese investors in the first 11 months of 2016 amounted to $29.73 billion， surging by 151.9 percent year on year and taking up 18.4 percent of China’s total non-financial direct investment overseas. 　　Moreover， the United States is the favorite overseas destination for Chinese investors， according to a survey made by the China Council for the Promotion of International