With the recent approval of the State Council, the National Development and Reform Commission, the Ministry of Commerce, the Ministry of Industry and Information Technology, the Ministry of Natural Resources, the Ministry of Ecology and Environment, and the Ministry of Transport of the People's Republic of China jointly issued the Interpretation on Manufacturing-oriented Policy Measures to Promote Expansion, Stabilize Stock and Improve Quality of Foreign Investment (the Measures) to enhance investment attraction in the manufacturing industry, solve prominent problems facing foreign-funded enterprises and provide better foreign investment attraction and services comprehensively, to promote the high-quality development with foreign investment.
The Measures clarifies the directions and main tasks of foreign investment utilization in China for now and the future.
First, China will optimize the investment environment to expand foreign investment. China will fully implement The Special Administrative Measures (Negative List) for Foreign Investment Access and speed up the launch of foreign investment projects based on the policies related to opening up. China will implement the high-standard national treatment for foreign investment after having access to China and ensure foreign-funded enterprises will equally benefit from supportive policies according to relevant laws and regulations. China will facilitate the signing and implementation of foreign-funded projects and provide better supportive policies and services. China will further guarantee land factors and fulfill the reasonable demands of the manufacturing industry's foreign-funded projects. A series of international cooperation activities for industrial investment will be carried out to strengthen exchanges between China and foreign-funded enterprises, relevant chambers of commerce, and international organizations. On top of this, the efficiency of public service platforms for international investment will be improved and services for the investment promotion by means of major exhibitions and conferences will also be enhanced.
Second, China will boost investment services to stabilize the stock of foreign investment. China will facilitate international business travel, making full use of the "green channels" for Chinese and foreign personnel exchanges. China will smooth freight transport and logistics to ensure the smooth transportation of production materials and products of foreign-funded enterprises. China will enhance financial support for foreign-funded enterprises and offer high-quality financial services and financing support for eligible foreign-funded enterprises in accordance with the principles of marketization. China will encourage foreign-funded enterprises to carry out reinvestment with their profits and implement policies such as allowing investors to be exempt temporarily from withholding income tax of the amount of profits distributed for direct investments. China will support the import and export of foreign-funded enterprises in the manufacturing industry and offer services and instructions to them in customs clearance of trade and other relevant aspects.
Third, China will provide guidance for investment directions to improve foreign investment quality. China will optimize the foreign investment structure and carry out supporting policies of the Catalogue of Encouraged Industries for Foreign Investment. China will offer support to the innovative development of foreign investment, encourage foreign-funded enterprises to establish R&D centers in China, and strengthen opening up and cooperation in scientific and technological fields. China will facilitate green and low-carbon upgrading of foreign investment and guide foreign investment to participate in the effort to achieve carbon peak and carbon neutrality. At the same time, China will guide the phased trans-regional relocation of foreign-funded enterprises in the manufacturing industry of China and encourage multinational companies to settle in places with good industrial development foundations in central, western, and northeastern regions of China.
(Source: National Development and Reform Commission of the People's Republic of China)
(All information in this document is authentic in Chinese. English is provided for reference only. In case of any discrepancy, the Chinese version shall prevail.)