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    Small firms should also think global

    By Mike Bastin | China Daily | Updated: 2013-08-07 07:16

    China's State Administration of Taxation very recently and very publicly reported that the value-added tax, or VAT, reforms introduced earlier this year have reduced the tax burden incurred by China's army of small businesses by 40.6 billion yuan ($6.57 billion). The administration also noted that a total of 1.29 million of China's small businesses have been helped by these reforms.

    This is indeed welcome news, especially at a time when domestic consumption and the growth of smaller Chinese companies are pivotal to China's economy.

    But will tax savings necessarily lead to a more competitive, innovative and market-oriented Chinese small business sector? And will tax savings encourage China's small businesses to venture overseas and climb the internationalization ladder more quickly and effectively?

    Small firms should also think global

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