According to 21st Century Business Herald, a few days ago, the chief executive officers and the chief financial officers at the multinational corporations (MNCs) have all received letters from China's State Administration of Taxation (SAT).

These letters were sent out by Jiangsu State Administration of Taxation (JSAT) detailing China’s international tax compliance management plan.

JSAT highlights that when distributing their profits, MNCs should take full account of the profits attributable to local special factors.

He Jun, the senior researcher at ANBOUND Consulting is of the view this incident have surely caused something of a stir among the foreign investors and this will have certain impacts on the foreign investment.

He Jun is of the view that JSAT’s policies might bring a series of changes to the foreign investment in China.