Tcl Li: Reduce VAT and guide more capital into industry

TCL Group last year completed the income of hundreds of billions of leap, the NPC deputies, TCL chairman and CEO Li a relaxed face. But his proposal to come to Beijing to participate in the national "two sessions" is heavy--on strengthening China's industrial competitiveness.

"China's industrial competitiveness is the basis for China to remain competitive," Li said in an interview with the first financial daily newspaper March 4. He believes that in the future China will still be able to maintain the status of the Global Industrial Manufacturing center, foreign investment is relatively high, foreign brands commissioned by China Processing, the future Chinese brands in the proportion of Chinese industry will increase. At the same time, the proportion of China's high-end products will increase.

Li suggested that the state reduce value-added tax, improve the financing environment, and strongly support the industry group "go out" in order to increase the return on Chinese industrial investment and allow more social funds to re-enter the industry.

Improving the industrial investment environment

on how to improve the industrial development environment, Li proposed to formulate tax and fiscal policies favourable to industrial enterprises.

First, China's 17% value-added tax rate is relatively high, resulting in Chinese industrial products tax-bearing prices high. That is why Hong Kong's parallel imports are being resold. It is therefore proposed to reduce product value-added tax.

The second is to allow group companies to consolidate the payment of income tax. For example, a group of 20 corporate companies, of which 15 make money, 5 losses, still 100% tax. If the tax is allowed to be combined, it will help the big industrial group grow.

Third is to allow High-tech industry equipment depreciation can be accelerated. Like LCD panel industry, China depreciation term than foreign long, huaxing photoelectric is in accordance with 7 years depreciation, this is and the Inland Revenue department repeatedly won, Japanese and Korean enterprises are in accordance with 5 years, Taiwan is in accordance with 6 years. These industrial technology update iterations quickly, accelerated depreciation can better stimulate China's industrial technology upgrades.

The domestic government to capital technology-intensive projects can be investment discount, TCL also enjoy. But there is still a lack of clear rules and institutional arrangements. In this way, enterprises take more and less, there are always a lot of criticism in the market voice. Li suggests that if the state has clearer rules and institutional arrangements for fiscal policy to support industry, it can reduce social skepticism.

Li also called for more convenience in financing industrial projects. First, the mainland enterprises listed and equity refinancing is more difficult, many of the overseas operation of the investment plan, the mainland has no way to implement, hoping to refinance the simplification. For example, Tcl last year directed additional 7 months completed is also fast, and Hong Kong, China to do the same increase in theory, 1 days, it is a filing system.

Second, debt financing. After the reform of the financial sector, domestic debt financing is no problem, but the interest rate of loans is higher, hoping to further cut rates. The bank cut interest rates two days ago, but still much higher than in Europe, the United States and Japan, in which case the difference in the cost of the industrial enterprises ' interests is greatly affected. Foreign enterprises can obtain relatively low interest in the host country, the domestic is relatively high.

Extending to the service sector

Gave the government a bunch of suggestions, Li Frankly, the revitalization of industrial enterprises themselves bear the main responsibility. With the rising of domestic labor cost, it is difficult to survive simply, to improve the value-added of products, extend to the service industry, and export the industrial capacity is the only way.

Recently, TCL Group's organizational structure adjusted to "7+3", the first seven are the original industrial sector, the latter three are the new services sector, including smart Internet applications, finance and O2O.

Talking about the financial layout, Li to the "First financial daily" reporter revealed that tcl to do industrial finance, the original Enterprise finance company, but can only serve in the system, can not serve the system, so last year Tcl launched a new layout: first, the establishment of a small loan company, has obtained a national licence, to the system outside the customer service The second is supply chain finance company, can support domestic and foreign supply chain partners, to help industry enhance competitiveness; third, consumer credit, the participation of the Hubei bank, to become a third party shareholders, consumers can be issued consumer credit, I hope TCL commercial system Business first to enjoy this service, such as medical electronic equipment, high unit price, Can let the customer installment; Four is the third party payment, TCL Communication and UnionPay cooperation in the mobile terminal to achieve payment, last year, the third party to pay water volume reached 1.2 billion yuan, so, Tcl is applying for mobile payment qualification license; Five is TCL has become the second largest shareholder of Huizhou, but also shares in the country to open the fund.

Li believes that industrial finance can better serve TCL's original industrial business and bring better returns. "Our industrial finance will not be radical, it is safer to follow the strategy." ”

In addition to extending to the service industry, it is a general trend to lose China's industrial capacity overseas. Li said Tcl will build its industrial capacity in Brazil and India this year.

To overseas, not just production, to build up the brand and service ability, Li suggested that the country should not only support capital exports (resources and infrastructure projects), but also support industrial output (internationalization of Chinese enterprises) in its international strategy, and support our industrial capability, product technical capability, Brand channel ability to root in the local.