March 20 2024

China Policy Support Measures to Attract Foreign Investment

The Chinese government released the Circular of the State Council on Issuing the Action Plan on Solidly Promoting High-level Opening-up and Intensifying Efforts to Introduce and Utilize Foreign Investment, calling for implementing policy support measures to make the nation more attractive to foreign investment.

Among the initiatives outlined in the plan, there is the possibility for companies established in China, with reinvestments from foreign-invested enterprises, to be exempt from import duties on equipment for their own use if they meet the conditions specified in the Catalogue of Encouraged Industries for Foreign Investment.

It vows to implement tax relief policies for foreign investors to invest in the Chinese bond market and other financial markets, and expand the Catalogue of Encouraged Industries for Foreign Investment and the list of key foreign-funded projects.

For the Catalogue of Encouraged Industries for Foreign Investment, the country will increase support for advanced manufacturing, high-tech, energy conservation and environmental protection.

For the Catalogue of Priority Industries for Foreign Investment in Central and Western China, more support will be provided for basic manufacturing, applicable technologies and other fields.

The country will also support the inclusion of foreign-funded projects in integrated circuits, biomedicine and high-end equipment to the List of Key Foreign-funded Projects for access to the corresponding support policies.