In the aftermath of 2008 financial crisis, many Chinese small enterprises encounter lots of hardship and challenge. In fact, in China tax keep increasing that put countless pressure and burden of those small enterprises. In order to release their pain and stress, Chinese government decides to cut the major price for small businesses. In my opinion, it is extremely helpful for Chinese economic recovery. No doubt the tax cutting policy really benefits those small enterprises and reduces their financial burden. They don’t need to worry of the high tax and it is easier for them to accumulate wealth. Obviously they get more money than before and will undoubtedly consume more as well. Therefore more and more money will circulate in the Chinese economy and sooner or later Chinese people will achieve the goal of economic recovery.

However many Chinese people argue that if the policy are implemented, Chinese government will have much less tax revenue to spend to stimulate economic development. However I don’t think so. I believe Chinese people become easier to create wealth and consume more due to the tax-cutting policy; thus because of the gradual growth in income and consumption, net tax revenue may also increase which benefits the government as well.

REFERENCES

Tax cut to benefit over 900,000 enterprises. Xinhuanews.    Receive from

  http://news.xinhuanet.com/english/china/2012-11/26/c_132000164.htm

photo via:

http://www.golocalprov.com/images/made/images/remote/http_media.golocalprov.com/News/taxcuts_360_257.jpg

Chinese people felt extremely shock when Sanlu company is reveal that its infant milk formula is contaminate by melamine which had already kill many children. In fact, in China, more and more companies lack responsibilities to our society and adopt a desperate way to reduce cost to compete effectively.  Many people start to question about the ethics of Chinese business.

In my opinion, the violation of business ethics is not just happen in China:; obviously it take place in countless countries as well. It is commonly acknowledged that business is supposed to pursed profit.  If they notice the lack of regulation of government or loophole in the law, they will desperately invest lots of money into it even though the product cause serious problem (e.g. health issue) to human. I really think government should play a vital role in regulate and monitor the market in order to prevent harm or other bad effect from exposing to people.  In addition, government should really further improve our law and regulation system. In that way, companies have no loophole to exploit and stick to ethical and legal approach.

REFERENCE:

Sanlu, company in China milk scandal, declared bankrupt.  The China Post. Recieve from：

https://www.chinapost.com.tw/business/company-focus/2008/12/24/189104/Sanlu-company.htm

photo via:

http://www.bjreview.com.cn/nation/images/attachement/jpg/site23/20080922/00219b3c5b0d0a418f2417.jpg

Welcome to UBC Blogs. This is your first post. Edit or delete it, then start blogging!