China has introduced new policies aimed at encouraging foreign-funded enterprises to reinvest in the country, seeking to strengthen its economy and foster global collaboration.
The new measures were detailed in a circular jointly released by seven key government departments, including the National Development and Reform Commission (NDRC), Ministry of Finance, Ministry of Natural Resources, Ministry of Commerce, People’s Bank of China, State Taxation Administration, and the State Administration of Foreign Exchange.
These policies cover a wide range of areas, from simplifying procedures for foreign investors to providing stronger support for project implementation. They also aim to enhance access to financial products and services tailored for foreign enterprises.
“These seven departments each oversee different but complementary areas,” said Liu Yue, Deputy Director of the NDRC’s Institute for International Economic Research. “Together, they can ensure a coordinated and effective rollout of policies that meet both macro-level goals and enterprise-level needs.”
The measures include pilot programs for investment information reporting, promote better information sharing among authorities, and plan to improve evaluation methods for promoting foreign investment.
Liu emphasized the importance of coordinated efforts at both the central and local levels. She noted that China’s push for large-scale equipment upgrades and a nationwide campaign to replace old consumer goods have created new opportunities for foreign investors.
On the supply side, deeper collaboration between foreign and Chinese firms is seen as critical for long-term success. Liu suggested that foreign enterprises should integrate and work with local partners in research and development, manufacturing, and innovation.
Official data from the Ministry of Commerce shows growing confidence among foreign investors. In the first five months of this year, over 24,000 new foreign-invested enterprises were established in China, marking a 10.4 percent year-on-year increase. High-tech sectors have become a major driver of foreign investment, accounting for over 30 percent of actual use.
These new measures signal China’s commitment to opening up its economy and providing a more favorable environment for foreign businesses. By fostering international collaboration, China aims to drive innovation and contribute to global economic growth.
