No. 353-354, Feb 4 - 11(2)

By English Edition Staff
Published: 2008-02-12

Charity Funds Affected by Corporate Tax Law
News, page 3 
The newly implemented Corporate Tax Law that came into effect on January 1st may harm the capacity of charity funds to carry out public work, as the law requires non-profit organizations investing in business operations to pay 25% of corporate tax. In recent years, charitable trust funds looking for self-reliance and sustainable funding have made strategic investments for "returns", which is then channeled into charity projects. The new law treats such returns as profits resulted from business operations, but several members from China's political advisory body – the National Committee of Political Consultative Conferences – are planning to call for tax exemptions for such non-profit organizations at the upcoming national level meeting.
Original article: [Chinese]

Policies Barometer
News, page 4 
The EO draws special attention to 14 central government ministers and analyzes the direction their core policy will take this year. Among the strategies expected to be deployed which will impact China's business and economic environment include tightening monetary policy, making structural adjustments for imports and exports, increasing tax collection by local government, and reforming salaries, healthcare, and landuse.
Original article: [Chinese]

Yahoo China to Truly Enter the Alibaba's Ecosystem
Corporation, page 19 
After nearly three years after being acquired by the Alibaba Group, Yahoo China is undergoing another round of restructuring to be truly integrated into the former, China's most prominent electronic commerce framework. Yahoo China terminated about 100 staff in January, abolished its new media, search engine and communication units and replaced them with website operation, email operation, technical engineering and market communication departments. Sources disclose that the move aims to realign Yahoo China’s operations to focus on a new generation of electronic commerce platform that combines search engine, community networking and business operations for aspiring entrepreneurs – to be integrated with Alibaba’s other services in the future.
Original article: [Chinese] 

Incentives for Cars Powered by Alternative Energy
Automobile, page 25 
The Chinese government is drafting regulations that will promote research and development of cars that use alternative energy and conserve resources. Incentives such as soft loans, subsidies and tax cuts are said to be on the drawing board as the government gathers experts’ opinion from academic institutions, car makers and related authorities.
Original article: [Chinese]

Call for Liberating Chinese Education System
Observer, page 35
Lui Daoyu, a Chinese educator, talks about the need for an overhaul of the Chinese education system. He believes education, like a market economy, can perform better with minimal government intervention.
Original article: [Chinese]

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