GET Stock QuotesNews18 APP
News18 English
Powered by cricketnext logo
»
1-min read

China Cuts Tax Rates for Chipmakers Amid Trade Tensions

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.

Reuters

Updated:March 30, 2018, 1:25 PM IST
facebookTwittergoogleskypewhatsapp
China Cuts Tax Rates for Chipmakers Amid Trade Tensions
Representative image. (Reuters)
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. The new rules are effective from Jan 1, 2018.

China relies heavily on foreign semiconductors, which make up one of its largest import categories by value. It is seeking to overtake foreign rivals and become a top semiconductor producer by 2030, according to its own roadmap.

China's ambitions have riled overseas regulators, however, who have blocked several acquisition attempts by Chinese firms looking to speed up development through technology transfers.

U.S. President Donald Trump's administration is requesting China purchase more semiconductors from the United States as part of a plan to avoid proposed tariffs and a potential trade war, Reuters reported on Tuesday.

According to Friday's notice, companies producing high-end chips using 65-nanometre technology or smaller with an investment of over 15 billion yuan ($2.39 billion) will be exempt from corporate taxes for five years. Companies producing chips using 130-nanometre technology or smaller will be tax exempt for two years.

Also Watch

| Edited by: Aditya Nair
Read full article
Loading...
Most Active
Company Price Change %Gain
Bajaj Finance 2,661.00 +140.80 +5.59
Bajaj Auto 2,978.10 -136.90 -4.39
Reliance 1,123.50 +18.65 +1.69
Infosys 1,358.65 +41.95 +3.19
Ashok Leyland 108.95 +3.25 +3.07
Company Price Change %Gain
ICICI Bank 265.55 +4.35 +1.67
Power Grid Corp 176.20 -1.05 -0.59
Tata Comm 553.00 +3.30 +0.60
Bajaj Finance 2,658.60 +141.00 +5.60
Muthoot Finance 388.00 -1.55 -0.40
Top Gainers
Company Price Change %Gain
Bajaj Finance 2,661.20 +141.00 +5.59
Bajaj Finserv 6,621.95 +325.05 +5.16
Infosys 1,358.65 +41.95 +3.19
Larsen 1,285.25 +27.15 +2.16
HCL Tech 1,000.00 +17.90 +1.82
Company Price Change %Gain
Infosys 1,358.45 +41.90 +3.18
Larsen 1,285.00 +29.45 +2.35
ICICI Bank 265.55 +4.35 +1.67
Reliance 1,122.50 +18.60 +1.68
Sun Pharma 553.00 +7.90 +1.45
Top Losers
Company Price Change %Gain
Bajaj Auto 2,977.60 -137.40 -4.41
ONGC 157.10 -4.65 -2.87
Vedanta 202.40 -5.80 -2.79
HPCL 276.75 -7.65 -2.69
IOC 161.95 -3.85 -2.32
Company Price Change %Gain
Bajaj Auto 2,978.95 -133.85 -4.30
Vedanta 202.35 -5.95 -2.86
ONGC 157.20 -4.20 -2.60
Hero Motocorp 3,420.50 -38.40 -1.11
Yes Bank 387.00 -4.20 -1.07
Loading...
Loading...