China introduces new tax rates for chipmakers

BEIJING: China’s finance ministry said on Friday it has introduced new tax breaks and exemptions for firms making semiconductors, seeking to limit dependence on foreign chips amid trade tensions with the United States over technology transfers.
The move comes as the United States is considering imposing tariffs on $50 billion worth of Chinese exports, citing discriminatory trade practices in high-tech sectors, including semiconductors.
Chipmakers will be exempt from corporate taxes for two to five years followed by partial deductions, the ministry said in a notice posted on its website on Friday.
The exemptions cover a range of products, from very basic to cutting-edge chips. — Reuters