The concept of two pillars has gathered momentum worldwide. China may get more tax revenues from the first reform, and the second will have minimal impact. Global tax reform will also have a negligible effect on China’s foreign investment.

China is about to slash the employer contribution rate to the social-security fund from 18-20% (with some variation across regions) to 16%, and cut the value-added tax (VAT) rate from 16% to 13% (for most enterprises). This is on top of a previously announced reduction in the corporate income tax charged on the first CN¥3 million ($447,000) of taxable income.

China is determined to build upon its previous success in tax reform by carrying out further tax cuts, which are set to come into effect starting on May 1, in order to “activate the market and boost people’s creativity.” These measures aim to boost economic growth and provide a response to increasing trade tensions with the United States.

With China’s economic development and transformation, as well as the stronger domestic consumption and innovation, US enterprises are still willing to increase direct investment in China.

How will the Republican tax bill affect America? It’s complicated.

China said on Thursday that it would temporarily exempt foreign companies from paying tax on their earnings, a bid to keep American businesses from taking their profits out of China following Washington’s overhaul of the United States tax code.

Trump’s tax reform triumph brings its own set of risks to the recovering US economy.

The U.S. Congress appears poised to pass major tax reform legislation before the end of 2017. There will be international spillover from these proposed changes.

Tax cuts masquerading as tax reform are the best way to describe the thrust of Washington’s latest policy gambit. The case is largely political – namely, the urgency of a Republican Congress to deliver a legislative victory for a Republican president. The consequences, however, are ultimately economic – and, unsurprisingly, likely to be far worse than the politicians are willing to admit.

US President Donald Trump’s daughter Ivanka has cancelled plans to visit South Korea and China during her father’s upcoming Asian trip to work on hi