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 [2011] 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.