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China and US and the global digital service tax proposals

05 November 2019 / Richard Asquith
Issue: 4719 / Categories: Comment & Analysis
10488
Some unexpected bedfellows

Key points

  • Both China and the US are concerned about digital service tax proposals.
  • The Chinese domestic slowdown generates overseas expansion for its large digital businesses.
  • Weibo the Chinese blogging site has almost half a billion users abroad.
  • European and Indian turnover tax plans are seen as a breach of long-established global treaties.


As the US prepares to take retaliatory measures against European and Indian digital service tax (DST) plans it has found an unexpected ally: China. Although we have watched as the two nations ratchet up their tariff and currency confrontations they have found common ground in checking a big-tech tax grab by the rest of the world.

So far China has let the US do all the sabre rattling around the DST proposals from a growing list of countries. The US threats against French wine or a UK post-Brexit free trade deal...

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