The purposes of this study are to investigate the influence on the FDI of China’s tax policy after China enter into WTO. Along with the implementation of the policies, beginning since the reform and opening up, and economic in-depth development, the FDI inflows in China grew with each passing day.
This paper figure out that tax incentive policy only play a good part on FDI at the beginning of implement through analyze the tax policy of FDI’s regulating phase. However, along with the maturation and stabilization of China’s polity and economic circumstance, it’s incentive power are fading out.
Through analysis, we have concluded that: with our country’s political and economic stabilization and industry standardization, it is necessary to unite the income tax for domestic and foreign-funded enterprises ,which is not only propitious to China’s economy’s overall arrangement, but also to the fair competition between domestic and foreign-funded enterprises, in line with the WTO principle of national treatment.