CHINA

Overhaul of Tax System Planned: China is taking the next big step in its march toward a socialist market economy by overhauling its tax system, a Chinese official said. China’s unequal taxes had been tough on many state-run enterprises. Unlike foreign firms, which pay a top tax rate of 33%, state firms pay as much as 55% to 60% tax on their earnings. The tax burden, along with an antiquated centrally controlled production system, was not only draining money from state-run factories but also siphoning away incentive. Experts say Chinese companies will never become competitive unless China changes the way it taxes them.