Hello everyone. My name is Peter Drey and I welcome you to the PWC Taxbyte podcast series.

In this episode we're going to talk about China, a very important topic for international business.

And to talk about the topic, I invited two experts. First of all,

I'm very honored to have Anita Peng with us. Anita is a tax partner in PWC, China, and

she's also China's consumer sector tax leader, and she's located in Shanghai. Welcome,

Anita, to the podcast. Secondly, we have Alexei Demier.

Alexi is China's business group leader for PWC Belgium and has many years of experience in the international trade and tax system of China.

Welcome, both of you.

Let's just kick off immediately with this interesting topic.

And first, Alexei, I want to ask you, why is it important that we have this podcast today on China's tax policy? Thank you, Peter. I think it is clear that

the world of tax is very dynamic. So with so many initiatives going on, we are quite busy.

So the Biden administration released his intentions and it enabled

to unlock quite difficult negotiations at the OECD on the taxation of the digital economy and the

agreement of a global minimum tax for multinationals, what we often say, Pillar 1 and Pillar 2 debates. Now, aside of the US,

the EU is also moving with Atta 3, a quite heavy tax transparency agenda and many

environmental taxes, including the fit for 55 plan. So in this context, we cannot avoid asking ourselves, what about China?

China is today the second largest economy in the world, but very soon and very likely, it will be the first one.

So I'm sure many of our listeners have a China presence. And China is clearly less vocal in these international debates.

But I also see that it is very clear that the Chinese government has a roadmap for taxation.

And the 14th plan of the Communist Party, of the China Communist Party covering the period 21 to 25 is the roadmap.

And I think we cannot disconnect the tax policy plans from other financial reforms.

So yes, there are plans in terms of environmental taxation, in terms of stimulate the economies and specific industries,

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