August 2017 (No.2) - New Policies For Encouraging Foreign Investment In China

1)    Exempting withholding tax on profit distribution to foreign investors for direct reinvestment in encouraged projects;

2)    Applying the “negative-list” approach, which is currently used in free-trade zones, as foreign investment guidance nationwide. That way, foreign investors to be engaged in activities not included on the “negative list” can enjoy the same treatment as domestic investors and set up business entities in China;

3)    Abolishing or relaxing restrictions on foreign shareholding in certain manufacturing and service sectors;

4)    Encouraging local governments to offer incentives to multinational corporations for setting up regional headquarters in China;

5)    Offering enterprise income tax incentives, e.g., a 15 percent tax rate, which currently applies   to   Advanced   Technology  Service Enterprises in pilot cities throughout the country;

6)    Streamlining the visa and work permit application processes to foreign talents working in China.