Attracting Foreign Investment in China
- Apr 11, 2024
- Posted by: sinovestconsulting
- Category: Legal & Regulation
Greater Efforts to Attract the Foreign Investment in China
The General Office of the State Council issued the Action Plan for Solidly Promoting High-level Opening-up and Attracting and Utilizing Foreign Investment (hereinafter referred to as the “Action Plan”).
On the afternoon of March 20, the State Council New Office held a regular briefing on the policies of the State Council, at which the relevant responsible persons of the National Development and Reform Commission, the Ministry of Commerce, the People’s Bank of China and the National Immigration Administration introduced the relevant situation of promoting high-level opening up and making greater efforts to attract and utilize foreign investment.
The Action Plan emphasizes that foreign investment is an important force to participate in the construction of Chinese-style modernization and promote the common prosperity and development of China’s economy and the world economy, and to attract and utilize foreign investment more vigorously, it is necessary to adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, completely, accurately and comprehensively implement the new development concept, create a market-oriented, law-based and international first-class business environment, and consolidate the confidence of foreign investment in China.
The Action Plan proposes 24 measures in five areas:
- To expand market access and raise the level of liberalization of foreign investment. Reasonably shorten the negative list for foreign investment access, carry out pilot projects to relax foreign investment access in the field of scientific and technological innovation, expand the access of foreign financial institutions in the banking and insurance fields, expand the business scope of foreign financial institutions to participate in the domestic bond market, and further implement the pilot project for domestic investment by qualified foreign limited partners.
- To intensify policies to enhance the attractiveness of foreign investment. Expand the catalogue of industries encouraged for foreign investment and the list of foreign-funded projects, implement tax support policies, increase financial support, strengthen energy use guarantees, and support the central and western regions and northeast regions to undertake industrial transfer.
- To optimize the fair competition environment and do a good job in providing services for foreign-invested enterprises. It will be cleaned up behaviors and policy measures that violate fair competition, improve the bidding and bidding system, fairly participate in the formulation and revision of standards, improve the scientific level of administrative law enforcement, continue to build the “Invest in China” brand, and strengthen services for foreign-invested enterprises.
- To smoothen the flow of innovation elements and promote innovation cooperation between domestic and foreign-funded enterprises. Support the flow of data between foreign-invested enterprises and headquarters, facilitate the exchange of international business personnel, optimize the management of foreigners’ work and residence permits in China, and support cooperation and innovation between domestic and foreign institutions.
- To improve domestic regulations and better align ourselves with international high-standard economic and trade rules. Strengthen the protection of intellectual property rights, improve rules for cross-border data flows, actively promote the negotiation and implementation of high-standard economic and trade agreements, and increase the extent of pilot projects to connect with international high-standard economic and trade rules.
The Action Plan requires that all regions and departments should take the initiative to implement and effectively enhance the sense of gain of foreign-invested enterprises. All localities should make greater efforts to create an environment and improve services, take the practical problems that foreign-invested enterprises are concerned about as a breakthrough point, and be good at using innovative thinking to resolve contradictions. All departments should pay close attention to the refinement and implementation of various tasks, formulate timetables and roadmaps, and promote the implementation of policy measures. The National Development and Reform Commission, in conjunction with relevant departments, should strengthen guidance and coordination, track and evaluate the effectiveness of the implementation of various policies, summarize experience in a timely manner, and replicate and promote.
(Source: Chinese Government Policy Database, Belt and Road Portal)
