Potentials and Perils of E-Business in China

2014 ◽  
Vol 10 (4) ◽  
pp. 39-51
Author(s):  
James G.S. Yang
Keyword(s):  
Value Added ◽  
Gold Rush ◽  
Chinese Government ◽  
Internet Commerce ◽  
Tax Rate ◽  
A Value ◽  
Business Market ◽  
Online Business ◽  
Business In China ◽  
The U.S

The E-business market in China is growing at an exponential rate. In 2013, the business volume is expected to reach $285 billion which surpasses the level in the U.S. As a result, there is a gold rush to China to participate in the market. This article discusses the potential but also points out the perils. This paper also focuses on the competition in the Chinese E-business market, and reveals that the Chinese online business is almost completely monopolized by only one seller, Taobao, which accounts for 81.2% of the whole E-business market. This article further considers the tax burden of the Internet commerce transaction which found that the Chinese government imposes a value-added tax at a rate of 17%. This rate is much higher than the sales tax rate at 7% in the U.S. Additionally, this article investigates the problem of counterfeited products and infringement of intellectual property rights. It discovered that this problem is rampant in China. The losses in international trade amount to $360 billion a year. Eighty percent of the counterfeited products were originated in China. The problem is extremely serious. Moreover, this article offers many planning strategies for operating an E-business in China. Despite the perils, this article concludes that the benefits of running an E-business in China outweigh the risks.

The Advantages and Disadvantages of Internet Commerce in China

2018 ◽  
pp. 278-290
Author(s):  
James G. S. Yang
Keyword(s):  
Value Added ◽  
The United States ◽  
Sales Tax ◽  
The Internet ◽  
Chinese Government ◽  
Internet Commerce ◽  
Tax Rate ◽  
Advantages And Disadvantages ◽  
A Value ◽  
Final Consumer

This chapter further considers the tax aspect of the internet commerce transaction, which found that the Chinese government imposes a value-added tax at a rate of 17%. The system to impose value-added is extremely complicated. The first buyer pays tax. The tax is transferred to the second buyer, so on and so forth until the last buyer. It requires detailed records. It makes the tax administration highly burdensome. On the contrary, in the United States, the sales tax rate is only 7% and is imposed only on the final consumer. There are no sales between the first buyer and the last buyer. The taxing system is much simpler than its counterpart in China.

China’s VAT Tax Reform: A Boon for the Economy or an Opportunity for Moral Hazard?

2020 ◽  
Vol 23 (01) ◽  
pp. 2050004
Author(s):  
Ben Sopranzetti ◽  
Yue Ma
Keyword(s):  
Moral Hazard ◽  
Negative Impact ◽  
Value Added ◽  
Free Cash Flow ◽  
Chinese Government ◽  
Effective Tax Rate ◽  
Tax Rate ◽  
Positive Effects ◽  
Tax Savings ◽  
The Impact

In 2012, the Chinese government replaced the existing business sales tax with a Value-added tax for some, but not all, Shanghainese firms. The change was intended to reduce the effective tax rate for firms and stimulate capital investment and employment. Of concern is the potential for managerial moral hazard, whereby self-interested managers might appropriate some of the tax savings for themselves rather than use the tax savings as intended. This paper examines the impact of the tax change on the affected firms and finds no significant evidence that the intended positive effects were achieved. Moreover, it also finds no strong evidence of moral hazard. Instead, the paper documents that the tax change seems to have had a deleterious effect on firm performance. Specifically, employee compensation, capital expenditures, and free cash flow are all lower when the tax changes became effective, with the negative impact on cash flows lingering through 2014. An examination of the effective tax rate reveals that the tax change increased rather than decreased the effective tax rate in 2012 and 2013.

A value-added tax in the U.S.: An argument in favor

1997 ◽  
Vol 40 (3) ◽  
pp. 78-83 ◽  
Author(s):  
Paul Hooper ◽  
Karen A. Smith
Keyword(s):  
Value Added ◽  
Value Added Tax ◽  
A Value ◽  
The U.S

Casting the Ubiquitous Net of Information Control

2010 ◽  
Vol 2 (1) ◽  
pp. 53-70 ◽  
Author(s):  
Zixue Tai
Keyword(s):  
Self Regulation ◽  
Legal Framework ◽  
The Internet ◽  
Chinese Society ◽  
Chinese Government ◽  
Historical Evolution ◽  
Information Control ◽  
Foreign Companies ◽  
Online Business ◽  
Business In China

Alongside the rise of the Internet as a pivotal economic and cultural force in Chinese society, the Chinese government has implemented a two-tiered strategy in dealing with the great potential and underlying risks associated with the network era. This paper offers a critical, in-depth overview of China’s state-orchestrated Internet surveillance apparatus from the Great Firewall to the latest Green Dam project. The author examines the conceptual and historical evolution of the Golden Shield program and analyzes the legal framework through which official regulation is justified or rationalized. Next, the author examines the prevalent practice of industry self-regulation among both Chinese and foreign companies engaged in online business in China. The paper ends with a discussion of the aborted official effort of extending content control to individual computers with the Green Dam Youth Escort project.

scholarly journals Should The U.S. Seriously Contemplate Initiating A Value-Added Tax? What Are Other Countries Doing With This Type Of Tax?

2011 ◽  
Vol 5 (8) ◽  
Author(s):  
Jack R. Fay ◽  
Judson P. Stryker
Keyword(s):  
Value Added ◽  
Value Added Tax ◽  
Tax System ◽  
A Value ◽  
The U.S

The U. S. Tax System needs extensive changes. As Congress addresses these modifications, should it consider a value-added system? To what extent are other countries using the value-added tax?

Casting the Ubiquitous Net of Information Control

2011 ◽  
pp. 237-256 ◽  
Author(s):  
Zixue Tai
Keyword(s):  
Self Regulation ◽  
Legal Framework ◽  
The Internet ◽  
Chinese Society ◽  
Chinese Government ◽  
Historical Evolution ◽  
Information Control ◽  
Foreign Companies ◽  
Online Business ◽  
Business In China

Alongside the quick rise of the Internet as a pivotal economic and cultural force in Chinese society, the Chinese government has implemented a two-tiered strategy in coming to grips with the great potentials and underlying risks associated with the network era. This chapter offers a critical, in-depth overview of China’s state-orchestrated Internet surveillance apparatus from the Great Firewall to the latest Green Dam project. It first examines the conceptual and historical evolution of the Golden Shield program, followed by an analysis of the legal framework through which official regulation is justified or rationalized. Next, the chapter looks at the prevalent practice of industry self-regulation among both Chinese and foreign companies engaged in online business in China, and it ends with the discussion of the aborted official effort of extending content control to individual computers with the Green Dam Youth Escort project.

Novel CO2-Thermic Oxidation Process with Mg-Based Intermetallic Compounds and Its Application to Energy Storage Materials

2018 ◽  
Author(s):  
Younghwan Cha ◽  
Jung-In Lee ◽  
Panpan Dong ◽  
Xiahui Zhang ◽  
Min-Kyu Song
Keyword(s):  
Intermetallic Compounds ◽  
Oxidation Process ◽  
Value Added ◽  
Energy Storage Materials ◽  
Reaction Products ◽  
Materials Synthesis ◽  
Energy Materials ◽  
A Value ◽  
Carbon Coated ◽  
Novel Strategy

A novel strategy for the oxidation of Mg-based intermetallic compounds using CO<sub>2</sub> as an oxidizing agent was realized via simple thermal treatment, called ‘CO2-thermic Oxidation Process (CO-OP)’. Furthermore, as a value-added application, electrochemical properties of one of the reaction products (carbon-coated macroporous silicon) was evaluated. Considering the facile tunability of the chemical/physical properties of Mg-based intermetallics, we believe that this route can provide a simple and versatile platform for functional energy materials synthesis as well as CO<sub>2</sub> chemical utilization in an environment-friendly and sustainable way.

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