One of the attractive tax incentives in China is a reduced corporate income tax (CIT) of 15% for qualified enterprises in encouraged industries incorporated in designated Western Regions, as opposed to the standard CIT rate of 25%. However, the previous fiscal incentives for China’s Western Region had expired at the end of 2010 and the market is eagerly waiting for the Chinese government to launch a new round of incentives for that region. On July 27, 2011, the Ministry of Finance, General Administration of Customs (“GAC”) and State Administration of Taxation (“SAT”) jointly issued circular Caishui  No. 58 (“Circular 58”) providing fi scal incentives to further support the country’s go-west strategy. Circular 58 in general extends the CIT incentives together with customs duty incentives for the Western Region for the period from January 1, 2011 to December 31, 2020.