PBOC Ex-Governor Warns of Protectionism Against Multinationals

(Bloomberg) -- The former governor of China’s central bank, Zhou Xiaochuan, warned against protectionism and nationalism directed at multinational companies as world leaders seek to close tax loopholes.

While multinationals cause some distortion by avoiding taxes, they’re a key to global commerce, Zhou said at the annual meeting of International Finance Forum held in Guangzhou Saturday.

“Such loopholes in tax payments, profit transfers, or accounting manipulations have always been a macro-micro gaming,” Zhou said. “But we should not blame on multinationals only for all these.” 

Zhou also noted that there will be many challenges ahead regarding tax issues, including the distribution of taxes among nations in future, which is also epitomized in the allocation between China’s state and local governments. 

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With assistance from Bloomberg