The Fiscal/Taxation/Financial Subsystem
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An overview of the global history of outbound foreign direct investment shows that a state’s fiscal and financial policies play a critical role in promoting outbound investment. With respect to the framework of China’s fiscal, taxation and financial regimes, China has established a preliminary system oriented toward the market economy. Nonetheless, the existing fiscal, taxation and financial regimes and policies related to outbound investment by enterprises remain imperfect and require improvements to make them more systematic, scientific and implementable. This chapter is intended to offer basic ideas and recommendations on how to improve China’s fiscal/taxation and financial support systems so as to promote overseas investment and cooperation by Chinese enterprises.