The expansion of VAT in China is good news. It will provide additional support to the services sector, helping efforts to rebalance the Chinese economy.
In the long term it should also be good news to UK businesses operating in China as their tax burden is reduced.
However there will be short term costs as companies learn to navigate the new system. What we are doing to support UK businesses.
Read more about it via China Economy: Further Steps Towards an VAT System for the Services Sector – September 2012.