(Yicai Global) Dec. 4 -- China needs to pay close attention to how tax reform in the US affects competitiveness, labor productivity and workers' wages, and how this could create a spillover effect in the country, says Zhu Guangyao, vice minister of the Ministry of Finance yesterday in China's first response to the passing of a tax reform bill at the US House of Representatives.

The version of the reform approved is yet to be merged with the Senate version, and the most striking difference between them is the implementation deadline, Zhu said. The deadline for introducing the bill in the Senate version is 2019, while that of the House version is 2018.

Bridging this gap between the two versions is a key prerequisite for forming a common version before it is submitted to President Trump for approval, Zhu added.

"In general, the scheme still needs continuing negotiation, but its big uncertainties have been eliminated," he said. Tax policy adjustment will have a significant impact, and its spillover effect also cannot be ignored, as the US is the world's largest economy.

It is necessary to conduct policy discussions from the perspective of actively addressing stronger labor productivity, enhanced competitiveness, and better benefits for workers and the people, Zhu said. The previous G20 summit in Hangzhou adopted an important policy to strengthen the coordination of international tax policies.

"I think the G20 reached a consensus at the Hangzhou Summit. Next year, Argentina will host the G20 summit, and coordinating international tax policies will be an important topic. Taxation of the digital economy and other aspects will also be important. In terms of taxation policies, I think coordinating international macroeconomic policies is an important move