China: abroad investments inactive welcome

chiny24.com 1 year ago

The Council of the PRC published 24-point guidelines on optimising abroad investment and expanding efforts to attract them.

In line with the Council's recommendations, the administrative authorities of all levels should enhance the protection of the rights and interests of abroad investors, including strengthening the enforcement of intellectual property rights. It should attract abroad capital more effectively and build a market-oriented, legitimate business environment in line with global standards.

The published paper besides provides guidance on expanding financial support and taxation incentives for abroad capital companies. This is, among others, a periodic income taxation exemption.

Strengthening a good climate for abroad investment is to be done by:

improving the quality of abroad investment,
ensuring equal treatment of abroad companies with Chinese companies
the widest possible support for abroad investment,
strengthening their protection,
improving investment and business facilitation,
increasing fiscal and taxation support, and
improving the mechanics facilitating the full investment process by abroad entities.

In the first half of 2023, abroad direct investment amounted to USD 97.24 billion (approximately RMB 704 billion), a decrease of 2.7% year-on-year. At that time 24,000 fresh companies with abroad capital were created (increase by 35.7% y/y). Investments from France increased by 173.3%, from the UK by 135.3%, from Japan by 53% and from Germany by 14.2% year-on-year.

All this in a global economical downturn.