Taking return investment as an example, many private enterprises claim to be foreign-funded enterprises. In fact, they are just Chinese-born enterprises registering an offshore company abroad. Currently, the most famous island National offshore registration places include BVI, Cayman, Bermuda, etc. After registering offshore companies in these countries or regions, you can return to China as a "foreign businessman" to invest. The purpose of this is also very clear, that is to enjoy the preferential treatment of foreign-invested enterprises and reduce the tax burden to a certain extent.
Although my country has joined the WTO, the WTO only requires that foreign investors be treated no less favorably than its own residents. However, China currently gives foreign investors far better than "national treatment" "Super national treatment". Therefore, some private enterprises with better returns will think of using fake joint ventures to evade domestic taxes. This phenomenon will be difficult to eliminate in a short time because China's current development requires a large amount of financial support. To this end, preferential treatment for foreign investment will still be maintained for a certain period of time.
