ABSTRACT
China's foreign-related preferential tax policy, which is the outcome of reform and opening-up policy, was initiated at the end of the 1970s and the beginning of the 1980s. The background is that market-oriented reform was promoted in the whole country. It had achieved the agreement that opening to the outside world was the basic state policy. In order to attract great foreign capital as well as speed up the utilization of it, China went the way of "promoting opening with preference" under that international environment. At the beginning of reform and opening up, the development of a market economy and opening to the outside world just started, and all conditions needed to be improved. The complete foreign-related preferential tax policy and multi-level pattern of foreign-related tax preference could perform well on attracting foreign capital instantly in short time.
