China reduced income taxes for foreign firms.

Income taxes for foreign firms in China have been cut to 10% from 15% to encourage more investment, the China Daily reported. It quoted Gu Ming, a senior official working under the State Council, as saying China would announce other new measures this month or next, including more flexible rules to deal with foreign exchange deficits, favorable wage and land rent terms and the right to hire and fire. Proposed foreign investment in China fell by 20% to $1.2 billion in the first half of this year from the same period last year.