China's Ministry of Finance announced today that it has introduced new tax exemptions for companies manufacturing semiconductors in an effort to reduce reliance on foreign chips amid trade tensions with the United States over technology transfer.
The move comes at a time when the United States is considering a $ 50 billion customs tariffs on Chinese exports. The Chinese Ministry of Finance announced in a notice on its website that chipmakers will be exempt from corporate tax for two to five years, followed by partial discounts.
The new laws will be effective from 1 January 2018.
