China tax agreement set to boost trade

A new double taxation agreement between the UK and the People’s Republic of China is set to encourage more cross-border trade between the two countries.

The agreement was signed in London on 27 June by Foreign Secretary William Hague and Yang Jiechi, China’s Minister of Foreign Affairs.

Welcoming the agreement, Mr Hague said: “This new treaty represents an important step towards the modernisation of the UK’s tax treaty network and marks further progress in relations between the UK and China.

“It will encourage greater flows of cross border trade and investment which are vital for prosperity in both countries.”

The agreement will enter into force once both countries have completed their legislative procedures. Its provisions will then take effect from the following year.

The agreement was signed during a three-day visit to the UK by Chinese Premier Wen Jiabao. During the visit, Prime Minister David Cameron announced trade deals worth £1.4 billion following a UK-China summit and said trade with China represented a “huge opportunity” for the UK.

LINK: UK-China summit