杂志汇中国与非洲

Chinese banks saw a surge in mobile payments last year, official data showed early March.

Banking institutions handled 203 trillion yuan ($32 trillion) in mobile payments in 2017, up 28.8 percent, according to the People’s Bank of China.

A total of 37.6 billion payments were made through mobile banking services in the period, an increase of 46.1 percent.

China’s mobile payment sector has seen rapid development, driven by improved Internet infrastructure, increased use of mobile phones and innovation of financial services.

Boosting Foreign Investment

China will take a ser ies of new measures this year to solicit more foreign investment, Ning Jizhe, deputy head of the National Development and Reform Commission, said early March.

The negative list approach to market entry, which states sectors and businesses that are offlimit to foreign investment, will be expanded nationwide. More favorable policies concerning capital transfer and land use, which are enjoyed by domestic investors, will be given to foreign firms when they invest in China’s central, western and northeastern regions, Ning said.

Foreign direct investment in the Chinese mainland hit $131 billion last year. 

Cutting Taxes

China will reduce taxes on businesses and individuals by more than 800 billion yuan ($126 billion) in 2018, Premier Li Keqiang said early March.

China will prioritize lowering rates in man ufacturing and transportation, and raise the threshold for annual sales revenue for small-scale taxpayers, said Li.

Far greater numbers of small low-profit businesses will see their income tax halved, and the ceilings on deductible business purchases of instruments and equipment will be significantly raised, Li said. More logistics companies will enjoy preferential tax treatment on their use of land for storage facilities.

A total of 918.6 billion yuan ($141.3 billion) was saved last year via China’s ongoing reform to replace business tax with value-added tax.

Tightening Illegal Fundraising

China will strengthen supervision mechanism for illegal fundraising, hold local government officials accountable, and improve the legal system and public education in 2018. Key fields including online lending, property and rural cooperatives will be under greater scrutiny.

Rising illegal fundraising has been contained thanks to efforts against high-profile cases. China saw 5,197 illegal fundraising cases in 2016, involving 251.1 billion yuan ($39.8 billion), down 14.48 percent and 0.11 percent year on year, respectively, official data showed. Despite the progress, eastern coastal areas, central and western regions with large populations are still vulnerable to fraud.

Internet finance has grown as investors seek higher returns than bank deposits. But risks have piled up as regulations cannot keep up with the pace of development.

Supporting Foreign Banks

China’s banking regulator has cut red tape for foreign banks.

The China Banking Regulatory Commission revised rules for foreign banks, scrapping approval procedures for four items including overseas wealth management products and portfolio investment funds. Banks only need to report their services to authorities rather than obtaining approval in advance.

Procedures were also simplified for foreign lenders to set up new branches, appoint executives and issue bonds. The new policies became effective on February 13. The revision also clarified procedures and application materials for foreign-funded banks to invest in domestic banking institutions. The commission said it would continue to support foreign banks to enter the Chinese market, promising a fair and transparent policy environment.