Asian Spectator

Business & Finance Asia

CPA Australia Survey: Tax Reform And Technology Adoption To Bolster China's Stable Economic Growth In 2020

  • Written by CPA Australia

BEIJING, CHINA - Media OutReach[1] - 17 January 2020 - Bolstered by the adoption of emerging technologies and the government's tax and financial sector reforms, most accounting and finance professionals expect China's economy to maintain a stable growth rate of above 5.5 per cent in 2020. In addition, three-quarters expect their company's profit will remain the same or increase, according to the China Economic and Business Sentiment Survey 2020 conducted by CPA Australia, one of the world's largest accounting bodies.

CPA Australia Survey: Tax Reform And Technology Adoption To Bolster China's Stable Economic Growth In 2020

From left to right: Mr. Kevin Ng Member of CPA Australia North China Committee ,  Mr. Derek Chan President of CPA Australia North China Committee, Mr. Michael Yu President of CPA Australia East & Central China Committee and Mr. William Huang President of CPA Australia South China Committee

CPA Australia Survey: Tax Reform And Technology Adoption To Bolster China's Stable Economic Growth In 2020

Stable and high-quality economic growth

Despite short-term headwinds, the survey findings show that accounting and finance professionals are cautiously optimistic in China's economic conditions in 2020, with 76 per cent of respondents forecasting GDP growth of 5.5 per cent or above.

The results indicate that a combination of the adoption of emerging technologies and tax and financial sector reforms are helping to boost the economy. Further , over one-third of respondents believe improved China-US relations will also help to improve China's economy, with the easing of trade tensions expected to improve confidence in trade and investment, and make doing business easier.

A stable growth rate around 6 per cent in 2020 and high-quality growth driven by investments in emerging technologies will see China remain a key driver, if not the most important driver of global growth in 2020 and beyond.

Business resilience

Respondents are generally confident in China's business outlook for 2020, with 75 per cent expecting that their company's profit will remain the same or increase , of which 64 per cent believe that their company's profit will grow by 2 per cent or more. Consistent with robust profit expectations, respondents are generally confident with in the labour market in 2020, with 66 per cent expecting their company's headcount to remain the same or increase.

CPA Australia members were most likely to select attracting, retaining, and developing talent (27 per cent), followed by cost management (26 per cent), and investing into innovation and technology (25 per cent) as their company's key strategic focuses for 2020. This reflects a proactive short and long-term strategic focus of many Chinese firms.

Technology will continue to boost economic growth

Supported by measures to encourage investment in research and development, and adoption of emerging technologies, 42 per cent of respondents chose the adoption of emerging technologies such as artificial intelligence, blockchain technology, cloud computing, and robotic processing automation, as the top driver of domestic economic growth in 2020. This indicates that many accounting professionals are optimistic in the potential that these technologies may provide to the economy, labour productivity and business profitability.

The focus on innovation and technology by Chinese firms remains strong, with 69 per cent of respondents expecting their business to introduce a new product, service, or process in 2020, and half expect their business to increase investment in new technology.

The focus on innovation and technology represents a long-term strategy to continually move up the value chain. Targeted investments in innovation, technology and talent by businesses should be them boost efficiency and stay ahead of competitors.

Stimulating the economy through tax financial structural reforms

The survey findings show that accounting and finance professionals support policies to reform the financial sector and reform the tax system to promote economic growth.

It therefore comes as no surprise that 77 per cent of respondents indicated that tax reforms and reduced fees positively impacted their business in 2019, with 53 per cent stating it has reduced their business tax burden.

91 per cent of accounting and finance professionals are confident that tax reforms and fee reductions will provide a stimulus to the economy in 2020 through decreasing business operating costs and further encouraging China's economic transformation. The areas members would most like to see tax reforms in are corporate income tax (67 per cent), individual income tax (65 per cent) and value-added tax (55 per cent).

Seizing the opportunities from the Belt and Road Initiative

The Belt and Road Initiative (BRI) is progressively attracting more companies to engage in activities related to it, with 60 per cent of respondents stating that their company will engage in BRI-related activities over the next three years, up 5 percentage points from 2019.

6 1 per cent of respondents believe that the BRI will create more trade and investment opportunities for Chinese businesses in 2020, suggesting that accounting professionals are confident that the country's ambitious global infrastructure and investment plan will help increase bilateral trade and investment deals.    

In conclusion, businesses should take full advantage of the various strategies the government has announced to lift productivity, lower operating costs, and expand globally in 2020.

References

  1. ^ Media OutReach (www.media-outreach.com)

Authors: CPA Australia

Read more http://www.media-outreach.com/release.php/View/26662#Contact

Liquibox Completes Acquisition of DS Smith Plastics

RICHMOND, Va., Feb. 28, 2020 /PRNewswire-AsiaNet/ -- Liquibox, a portfolio company of Olympus Partners, has completed the acquisition of DS Smith plc's Plastics Division. The acquired divisi...

Huawei Releases Huawei ICT Academy Program 2.0, Set to Develop...

SHENZHEN, China, Feb. 27, 2020 /PRNewswire-AsiaNet/ -- At the Industrial Digital Transformation Conference-Live, Huawei officially released the Huawei ICT Academy Program 2.0. Through this p...

DERMALOG Fever Detection in Operation at Hanover Exhibition Gr...

HAMBURG and HANOVER, Germany, February 28, 2020 /PRNewswire-AsiaNet /-- The spread of coronavirus also affects the event industry. Congresses and trade fairs are postponed or even canceled w...

Yeedi Launches Easy to Use and Powerful Robot Vacuum Cleaner in the US Market

Yeedi celebrates introduction of its K600 in the US on Amazon.com with an early bird discount price from February 27th to March 12th SHENZHEN, CHINA - Media OutReach - Februa...

World ATM Congress Recognises Outstanding Achievement in Aviat...

MADRID, Feb. 27, 2020 /PRNewswire-AsiaNet/ -- ATCA (the Air Traffic Control Association ( https://c212.net/c/link/?t=0&l=en&o=2732143-1&h=2996339564&u=https%3A%2F%2Fwww.atca...

Tessa Therapeutics Announces U.S. FDA Regenerative Medicine Ad...

SINGAPORE, Feb. 27, 2020 /PRNewswire-AsiaNet/ -- RMAT designation follows positive proof-of-concept data from two independent Phase I/II clinical studies conducted by Baylor College of Medic...

UNISOC 5G Modem V510 Powers China Unicom's Latest 5G CPE

SHANGHAI, Feb. 27, 2020 /PRNewswire-AsiaNet/ -- UNISOC, a leading global supplier of mobile communications chipsets and IoT chipsets, today announced that its 5G Modem V510 is powering China...

Sojern Now Offers Data-Driven Travel Marketing Solutions to At...

SAN FRANCISCO, Feb. 27, 2020 /PRNewswire-AsiaNet/ -- - Tour and Activity Operators Can Now Seamlessly Build Multi-channel, Always-on Digital Advertising Campaigns That Drive Online SalesSoje...

Yeedi Launches Easy to Use and Powerful Robot Vacuum Cleaner in the US Market

SHENZHEN, CHINA, Feb 27, 2020 - (ACN Newswire) - Yeedi, a robot vacuum cleaner brand committed to delivering cutting edge floor cleaning technology, has launched the Yeedi K600 in the Ameri...

ERB Strengthens Cooperation with McKINLEY for Global Market Expansion

TALLINN, EE, Feb 27, 2020 - (ACN Newswire) - ERB, a Tallinn EE registered cryptocurrency exchange and investment platform, announces a world's first PDG-based (Project Default Guarantee) li...

Blockpass Lists PASS on LAToken, Provides KYC-as-a-Service

HONG KONG, Feb 27, 2020 - (ACN Newswire) - Blockpass has announced that it will provide eKYC services to LAToken, a rapidly growing crypto exchange that focuses on liquidity for new tokens...

Volvo Trucks Launches New Generation of Heavy-duty Trucks With...

GOTHERNBURG, Sweden, February 27, 2020 /PRNewswire-AsiaNet/-- Volvo Trucks is introducing four new trucks, with a strong focus on the driver environment, safety and productivity. "We are rea...

Lam Research Unveils Technology Breakthrough for EUV Lithography

FREMONT, Calif., Feb. 27, 2020 /PRNewswire-AsiaNet/ -- New dry resist technology being developed with ASML and imec will help to extend EUV lithography's resolution, productivity and yieldLa...

LONGi achieves AAA ranking status in latest PV ModuleTech Bank...

LONDON, Feb. 27, 2020 /PRNewswire-AsiaNet/ -- LONGi, China's top solar manufacturer, has been assigned AAA-Rated status (the highest grade awarded) by the market research division of leading...

AIM ImmunoTech joins with ChinaGoAbroad for Ampligen China Entry against COVID-19

OCALA, FL / ACCESSWIRE, Feb 27, 2020 - (ACN Newswire) - AIM ImmunoTech (NYSE American: AIM, or the Company), an immuno-pharma company focused on the research and development of therapeutics...

Captiva Verde Land Corp - Corporate Update

Vancouver, BC, Feb 27, 2020 - (ACN Newswire) - Captiva Verde Land Corp. (CSE: PWR) (OTC: CPIVF) (the "Company" or "Captiva"), is pleased to announce the following updates for each of its bu...

Xinhua Silk Road: Yili leads list of finalists for World Food ...

BEIJING, China, Feb. 27, 2020 /PRNewswire-AsiaNet/ -- Inner Mongolia Yili Industrial Group Co., Ltd., one of the Chinese dairy giants, has dominated the list of finalists for the World Food ...

LG SIGNATURE Presents Premium Kitchen Solutions for Fresher Fo...

SEOUL, South Korea, Feb. 27, 2020 /PRNewswire-AsiaNet/ -- - Brand-new Wine Cellar and Bottom-freezer Deliver Optimal Storage Conditions and Seamless Design, Elevating User Convenience and El...

Country Garden Delivered 100,000 Protective Suits Directly fro...

FOSHAN, China, Feb. 27, 2020 /PRNewswire-AsiaNet/ -- On February 24, 2020, nearly 100,000 protective suits purchased by Country Garden Holdings (HK:2007) through the Guoqiang Foundation were...