U.S. Treasury Secretary Jacob J. Lew attends G-20 in Chengdu

man with flagsFrom July 23-24, 2016, the G-20 Finance Ministers and Central Bank Governors Meeting was held in Chengdu. During a press conference held by the U.S. Department of the Treasury, Treasury Secretary Jacob J. Lew said that the implementation of structural reforms is very difficult on a global scale, and will not have an immediate effect, but fiscal policy must not replace structural reforms. If China could supplement reform with fiscal policy, such as China’s overcapacity problem, rational use of fiscal policy will be able to help the unemployed and low-skilled workers from over-capacitated sectors go through the transition period, which is very important. Lew also said that taxation will have a significant impact on the existing business model.’ How to break the boundaries between the countries? We need to step up efforts and be aware of the negative impact caused by differences. We should solve these problems through enhanced communication and cooperation, including double taxation and tax-exempt funds. We have also carried out tax reform to promote and strengthen the impact of competitive stimulation. I think that the tax authorities are facing their own problems of becoming more mature and dealing with a complex environment. We will continue to have discussions on a global level.