Final answer:
Value Added Taxes (VAT) in China encourage industrial growth, attract foreign investment, and enhance participation in global markets by supporting domestic industries and creating a business-friendly environment.
Step-by-step explanation:
Value Added Taxes (VAT) in countries like China are part of a broader economic strategy to encourage industrial growth and increase participation in global markets. By implementing policies that offer tax incentives for foreign companies and encourage the export of market-driven products, VAT plays a critical role in shaping economic activities within China. Special Economic Zones (SEZs) have been established to attract multinational corporations by leveraging lower labor and production costs, thereby creating new business opportunities and jobs. VAT also fits into a wider government strategy, which includes investments to build physical and human capital, fostering innovation, and providing the freedom for market forces to thrive. Through these efforts, VAT serves to support domestic industries and promotes a business-friendly environment that ultimately bolsters China's international economic presence.