China links strengthened with TIEA deal
Premier McKeeva Bush has announced that he has entered into a landmark agreement to share tax information with China.
It will grant the Chinese government access to all financial information held in Cayman for its nationals and corporations.
This is the 26th tax information exchange agreement (TIEA) signed by the Government.
Although it’s widely accepted that the deal with China – one of the fastest-growing economies in the world – is by far the most significant.
It further strengthens the links between the Bush administration and the Far East.
The Premier has entered into an agreement with the China Harbour Engineering Company to construct cruise ship passenger docks in George Town, Spotts Landing and a smaller pier at the Cayman Turtle Farm.
At the signing ceremony on September 26, Cayman Islands Premier McKeeva Bush said: “Signing this TIEA is a significant step in enhancing the relationship between the Cayman Islands and China.
“With China being one of the fastest-growing economies in the world, we are confident that this TIEA will contribute positively to economic activity between the two countries.”
“This is our 26th signed agreement for exchange of information for tax purposes, and the People’s Republic of China has become another member of the G20 countries to have a TIEA with the Cayman Islands.”
Bush co-signed the agreement with Song Lan, Deputy Commissioner of the State Administration. Both countries must conclude their individual ratification procedures before the agreement can enter into force.
Premier Bush has indicated a formal agreement – believed to be in the region of $500m – with the Chinese for the berthing construction work will be signed in November.
He has already signed an outline agreement in the form of a Memorandum of Understanding.
China is already involved in a multi-million dollar deal in Jamaica where they are completely overhauling the country’s road infrastructure.
China Harbour opened a Kingston office late last year after agreeing to manage two reconstruction projects in the island state: the $400 million Jamaica Infrastructure Development Programme and the $65 million Jamaica Airport Highway Project.
The work has been criticised because despite reassurances from China, there has not been the same local job opportunities for Jamaican nationals.