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Wednesday, 9 November 2011

China levies £14,000 a year for every non-chinese employee

You could not have a clearer example of the difference in mentality between that of the Chinese ruling elite and that of the British Political Establishment. The Chinese have no compunction in doing whatever suits their national interests whereas ours do what suits their globalist, internationalist aspirations in posturing on the "World Stage" often in flagrant disregard of the interests of "Britain", let alone ENGLAND!

China levies £14,000 a year for every non-chinese employee

Foreign businesses in China have attacked new legislation requiring them to pay as much as £14,000 a year for each non-Chinese member of staff.
By Malcolm Moore, Daily Telegraph reporter in Shanghai

The law, introduced on October 15, requires employers to pay 37pc of salary, and employees 11pc, into China's social insurance schemes. Contributions are capped at between 9,000 yuan (£885) and 11,600 yuan, depending on location. In return, foreigners will be entitled to a pension, basic healthcare, maternity, unemployment and workplace injury insurance.
Foreign companies and the Chinese authorities have been left bewildered by the regulations, which were passed just three months after a draft was issued for consultation.
"I raised the tax change [with Shanghai's mayor] at the weekend," said Sir Martin Sorrell, chief executive of advertising company WPP. "The reason they have made the law, I suppose, is they want more jobs to go to Chinese [rather than foreigners]."
WPP employs 200 foreigners among its 12,000-strong workforce in China, leaving it with perhaps a £2m liability. General Motors, which also has at least 200 foreigners on the mainland, faces a similar bill.
The law has also caused confusion. Xu Yanjun, deputy head of the ministry of Human Resources social security management centre, said there is no plan on how to collect the contributions or distribute the benefits.
The confusion has sparked hopes the regulations may be dropped. Opponents have pointed out foreigners should not have to pay into a pension, or for unemployment benefits, since they are not allowed to remain in the country if they are not working.
China has promised workers will be allowed to claim back their pension fund when they depart.
"The government looked at the million expats in China and thought, well, $10,000 from each of them would be a good earner," said one accountant in Shanghai who asked not to be named.

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