{"id":447218,"date":"2025-09-24T01:39:11","date_gmt":"2025-09-24T01:39:11","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/447218\/"},"modified":"2025-09-24T01:39:11","modified_gmt":"2025-09-24T01:39:11","slug":"chinas-local-governments-urgently-need-cash-can-the-5-year-plan-find-it","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/447218\/","title":{"rendered":"China\u2019s local governments urgently need cash. Can the 5-year plan find it?"},"content":{"rendered":"<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">As China drafts its 15th five-year plan \u2013 the next entry in a line of expansive blueprints that have set the tone for the country\u2019s development over more than seven decades \u2013 we examine how these documents inform and reflect high-level policy priorities, and what to expect in the coming iteration, such as how it could help alleviate local-level financial woes.<\/p>\n<p>For more entries in this ongoing series, <a target=\"_self\" class=\"e1yy41x40 ef9u0v01 css-1ankfgb ecgc78b0\" href=\"https:\/\/www.scmp.com\/article\/3326468\/chinas-15th-5-year-plan?module=inline&amp;pgtype=article?module=inline&amp;pgtype=article\" title=\"\" data-qa=\"BaseLink-renderAnchor-StyledAnchor\" rel=\"noopener\">click here<\/a>.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">In late March, an announcement by the central Hubei province sent a shiver down the spines of wealthy individuals across China: a local resident had been forced to pay 1.41 million yuan (US$200,000) in back taxes and late fees on undeclared overseas income.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">Within days, three other local tax departments had announced similar cases of individuals being hit with huge tax bills on their foreign earnings, with some of the payments reaching as high as 1.26 million yuan.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">The moves were part of a wider clampdown by Chinese authorities: although the country has long required individuals to pay tax on their overseas income, enforcement was, until recently, often lax and discretionary.<\/p>\n<p>Many local authorities find themselves needing to raise money to <a target=\"_self\" class=\"e1yy41x40 ef9u0v01 css-1ankfgb ecgc78b0\" href=\"https:\/\/www.scmp.com\/news\/china\/politics\/article\/3258472\/get-used-tighter-belts-how-chinas-local-governments-and-party-bodies-are-embracing-cost-cutting?module=inline&amp;pgtype=article\" title=\"\" data-qa=\"BaseLink-renderAnchor-StyledAnchor\" rel=\"noopener\">plug gaping holes in their budgets<\/a>. That is leading officials to crack down on tax violations that used to be widely tolerated \u2013 including undeclared income from abroad.<\/p>\n","protected":false},"excerpt":{"rendered":"As China drafts its 15th five-year plan \u2013 the next entry in a line of expansive blueprints that&hellip;\n","protected":false},"author":2,"featured_media":447219,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3090],"tags":[3801,51,1395,150729,87927,87179,150727,1700,150725,150726,98458,150730,150728,150731,44334,113841,16,15,9892],"class_list":{"0":"post-447218","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-beijing","9":"tag-business","10":"tag-china","11":"tag-china-center-for-public-finance","12":"tag-chinese-economy","13":"tag-consumption-tax","14":"tag-direct-taxes","15":"tag-economy","16":"tag-hubei","17":"tag-li-lixing","18":"tag-local-governments","19":"tag-lou-jiwei","20":"tag-lu-bingyang","21":"tag-ma-long","22":"tag-peking-university","23":"tag-property-tax","24":"tag-uk","25":"tag-united-kingdom","26":"tag-vat"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115256725528011782","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/447218","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=447218"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/447218\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/447219"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=447218"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=447218"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=447218"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}