New policy aims to curb tax dodges

The Chinese government's vow to increase scrutiny of foreign companies' taxes has sent businesses rushing to financial advisers to deal with the new rules, which are designed to rein in cross-border tax evasion.

Tax professionals and business lobbies alike have welcomed the move as an attempt to bring China's tax methods more into line with international standards.

But it has also raised concerns that the authorities could use the policy, which took effect on Sunday, as a tool to put the pinch on foreign companies - on top of what business lobbies already lament is an increasingly tough business climate in the world's second-largest economy.