Recent developments in China, the U.S. and Hong Kong raise tax issues for U.S. multinationals

Analysts expect several developments in the tax reform plans of China by the year 1998. Areas for possible tax reform include enterprise income tax systems of foreign and local investment enterprises, individual income tax, and estate and security transaction taxes. The reforms in China is being necessitated by the country's need to step up its tax collection in light of a booming economy and by its need to stimulate foreign investment.