Foreigners in policy making

Opinion / You Nuo

 Foreigners in policy making
By You Nuo (China Daily)
Updated: 2005-10-10 06:03

Do foreigners and overseas Chinese have the right to share in China's
budding democracy? I think they may, in the case of the country's income
tax law amendments.

If national lawmakers are scheduling a second public hearing session on
the proposed amendments, they may just as well invite a foreign employee
of a Chinese institution to air their views.

Having public hearings before making or updating laws is a democratic
approach. On September 27, the National People's Congress Standing
Committee hosted a hearing where the law was discussed, with
representatives of 5,000 individuals who volunteered to come to Beijing
to register their views.

Despite the diverse opinions one could read in the media, nothing,
regrettably, seems to have been mentioned about how the proposed changes
will affect foreigners working in China. But in their absolute number,
the community of foreign workers in this country is by no means
negligibly small.

Just 20 years ago, there were only a few foreign experts holding
long-term job contracts in China, in foreign language-related services
and universities. Most of them stayed in the quiet, secluded Beijing
Friendship Hotel.

But much has changed since the mid-1990s. Even in Zhengzhou, a large city
that is not well-known, officials recently gave green cards to nearly
1,000 foreign workers with local employers.

At a Beijing technology company where I once worked, I had colleagues
from 12 countries. We all paid income tax.

There are two types of foreign employees in China: those working for
international companies paid overseas and subject to another nation's
income tax rules, and those paid locally and, naturally, subject to
domestic laws.

But salary levels for locally hired foreign employees vary vastly from
one institution to another. Those who work in public sector institutions,
or foreign experts, who used to earn so much respect in the old days, are
the worst paid foreign workers in the country.

But while their Chinese colleagues begin to pay tax as their monthly
income breaks the 800 yuan (US$99) barrier, they can pocket their first
4,000 yuan (US$493) tax-free.

Foreign workers are playing a unique role in helping China implement its
reform policies. Many governments are either trying or being urged to
try, to import more expertise from overseas. There is room for
improvement in China's incentives offered to foreign workers.

There are two ways to provide incentives - to liberalize the pay policies
and to reduce the tax burden. If it is still not time, as officials often
say, for the country's many public sector institutions to fully implement
market economy pay policies - as our Chinese colleagues still have to
complete the reform of their salary and welfare systems - would it not be
nicer if foreign workers could enjoy some more tax incentives?

It would not be too hard to work out some incentives for those with more
dependents, those who hold long-term contracts and those who make
donations for poverty relief and environmental projects.

(China Daily 10/10/2005 page4)

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