Notice of the State Council on Several Measures to Promote the Growth of Foreign Investment
(Guo Fa [2017] No. 39)
People's governments of various provinces, autonomous regions, and municipalities directly under the Central Government, as well as various ministries and commissions of the State Council and directly affiliated institutions:
Actively utilizing foreign investment is an important part of China's opening-up strategy. The current economic globalization presents new characteristics, and China faces new situations and tasks in utilizing foreign investment. In order to deepen the supply side structural reform, promote streamlining administration and delegating powers, combining decentralization with management, and optimizing service reform, further enhance the level of legalization, internationalization, and facilitation of China's foreign investment environment, promote foreign investment growth, and improve the quality of foreign investment utilization, the relevant matters are hereby notified as follows:
1、 Further reduce restrictions on foreign investment access
(1) Fully implement the management system of pre admission national treatment and negative list. As soon as possible, promote the negative list of foreign investment that has been piloted in free trade pilot zones nationwide, and further enhance the openness, transparency, and standardization of the investment environment. (Responsible for the National Development and Reform Commission and the Ministry of Commerce)
(2) Further expand the scope of market access and opening up to the outside world. Continuously promote the manufacturing of specialized vehicles and new energy vehicles, ship design, regional and general aircraft maintenance, international maritime transportation, railway passenger transportation, gas stations, internet access service business premises, call centers, performance brokerage, banking, securities, and insurance industries, and clarify the timetable and roadmap for opening up to the outside world. (The Central Propaganda Department, Central Cyberspace Office, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Transport, Ministry of Commerce, Ministry of Culture, People's Bank of China, China Banking Regulatory Commission, China Securities Regulatory Commission, China Insurance Regulatory Commission, National Railway Administration, Civil Aviation Administration of China, and China Railway Corporation shall be responsible according to their respective responsibilities)
2、 Develop financial and tax support policies
(3) Encourage overseas investors to continue expanding their investment in China. For foreign investors who directly invest in encouraged investment projects from profits distributed by domestic resident enterprises in China, if the prescribed conditions are met, a deferred tax policy will be implemented and no withholding income tax will be levied temporarily. (The Ministry of Finance and the State Administration of Taxation are responsible according to their respective responsibilities)
(4) Give full play to the positive role of foreign investment in optimizing the structure of service trade. Promote the income tax preferential policies for technologically advanced service enterprises that meet the conditions in service outsourcing demonstration cities to the whole country, and guide more foreign investment to invest in high-tech and high value-added service industries. (Ministry of Finance, Ministry of Commerce, State Administration of Taxation, etc. shall be responsible according to their respective responsibilities)
(5) Promote the combination of utilizing foreign investment and outward investment. We will study and introduce relevant tax support policies for eligible overseas income from Chinese resident enterprises (including regional headquarters of multinational corporations) that are repatriated to China. (The Ministry of Finance and the State Administration of Taxation are responsible according to their respective responsibilities)
(6) Encourage multinational corporations to invest and establish regional headquarters in China. Support local governments to introduce policies and measures, including financial support, to attract regional headquarters of multinational corporations in accordance with the law and regulations, and actively participate in global industrial restructuring. (Responsible for each provincial-level people's government)
(7) Promote the transfer of foreign investment to the western region and the old industrial bases in Northeast China. Fully leverage the existing financial resources, actively support the construction of national level development zones (including economic and technological development zones, high-tech industry development zones, customs special supervision areas, etc.) in the western region and the old industrial base in Northeast China, in areas such as technological innovation, ecological environmental protection, public services, etc., improve the investment environment, enhance the quality of investment attraction, and undertake high-level manufacturing transfer. (The Ministry of Science and Technology, the Ministry of Finance, the Ministry of Commerce, and the General Administration of Customs are responsible according to their respective responsibilities)
(8) Support the construction of key investment platform infrastructure and major projects. Encourage provincial people's governments to issue local government bonds to support the infrastructure construction of national development zones, border economic cooperation zones, and cross-border economic cooperation zones. Accelerate the pilot development of local government special bond varieties that balance project returns and financing, and prioritize ensuring the financing needs of major eligible projects in the aforementioned regions. (The Ministry of Science and Technology, the Ministry of Finance, the Ministry of Commerce, the General Administration of Customs, and various provincial-level people's governments shall be responsible according to their respective responsibilities)
3、 Improving the Comprehensive Investment Environment of National Development Zones
(9) Fully grant investment management authority to national level development zones. Support national level development zones to carry out pilot reforms of relatively centralized administrative licensing rights. Guide national level development zones to further promote streamlining administration and delegating powers, combining decentralization with management, and optimizing service reforms, and play a demonstration and leading role in creating a good environment for foreign investment. (The Central Compilation Office, Ministry of Science and Technology, Ministry of Commerce, General Administration of Customs, and Legislative Affairs Office of the State Council are responsible according to their respective responsibilities)
(10) Support the implementation of national level development zone projects. Allowing all regions to give priority to ensuring the construction land indicators required for foreign investment projects in national development zones, while complying with economic and social development plans, overall land use plans, and overall urban planning, to ensure that all necessary guarantees are met. (The Ministry of Science and Technology, the Ministry of Land and Resources, the Ministry of Housing and Urban Rural Development, the Ministry of Commerce, the General Administration of Customs, and various provincial-level people's governments shall be responsible according to their respective responsibilities)
(11) Support the expansion of investment attraction space in national level development zones. For national level development zones that meet the conditions, with the approval of the State Council, it is allowed to relocate and expand the zones, integrate adjacent and similar development zones, establish enclave parks, and provide convenience such as planning adjustment and simplified approval for inefficient land collection and storage. (The Ministry of Science and Technology, the Ministry of Land and Resources, the Ministry of Housing and Urban Rural Development, the Ministry of Commerce, the General Administration of Customs, and local people's governments shall be responsible according to their respective responsibilities)
(12) Support national level development zones to enhance their industrial supporting service capabilities. In mature regions, introduce production service oriented foreign-funded enterprises, pilot domestic and foreign maintenance businesses for high-tech and high value-added projects, and promote the extension of processing trade to the high-end of the global industrial and value chains. (Responsible for the Ministry of Commerce and the General Administration of Customs)
4、 Facilitate the entry and exit of talents
(13) Improve the system for introducing foreign talents. Implement a work permit system for foreigners in China nationwide, using methods such as 'notification+commitment' and 'acceptance of vacancies' to provide convenience for foreign talents to apply for work permits. In 2018, the Regulations on the Management of Foreigners' Work in China were formulated and introduced, establishing a standardized and standardized system for foreigners to work in China. (The Ministry of Foreign Affairs, the Ministry of Public Security, the Legislative Affairs Office of the State Council, the State Administration for Foreign Affairs, etc. are responsible according to their respective responsibilities)
(14) Actively introduce international high-end talents. In the second half of 2017, detailed rules for the implementation of foreign talent visas were formulated and introduced, improving the evaluation standards for foreign talents, and expanding the scope of issuance; Relax the validity period of foreign talent visas, and issue long-term (5-10 years) multiple round trip visas to eligible foreigners. They can also apply for work permits and work related residence permits with this visa. Develop and introduce regulations on the management of permanent residency for foreigners, clarifying the conditions and procedures for foreigners to apply for and obtain permanent residency qualifications. (The Ministry of Foreign Affairs, the Ministry of Public Security, the Legislative Affairs Office of the State Council, the State Administration for Foreign Affairs, etc. are responsible according to their respective responsibilities)
5、 Optimize the business environment
(15) Quickly improve the legal system for foreign investment. Accelerate the unification of domestic and foreign investment laws and regulations, and formulate new basic laws for foreign investment. Clean up laws, regulations, rules, and policy documents related to foreign investment, and promote the abolition or revision of laws, regulations, or provisions that are inconsistent with the general direction and principles of the country's opening-up within a specified period of time. (Relevant departments and provincial people's governments shall be responsible according to their respective responsibilities)
(16) Improve the level of foreign investment services. Improve the complaint mechanism for central and local foreign-invested enterprises, coordinate and solve prominent issues reported by foreign investors, increase the protection of national treatment for foreign-invested enterprises after entry, and strive to create a unified, open, and competitive market environment. Establish a directory list system for administrative fees, government funds, and government fixed fees related to enterprise operations and services. (Relevant departments such as the National Development and Reform Commission, the Ministry of Finance, the Ministry of Commerce, and provincial people's governments shall be responsible according to their respective responsibilities)
(17) Ensure the free remittance of profits by overseas investors. Foreign investors can freely remit their profits, dividends, and other investment returns legally obtained within the country in RMB or foreign exchange in accordance with the law. (The People's Bank of China and the State Administration of Foreign Exchange shall be responsible according to their respective responsibilities)
(18) Deepen the sharing of management information and business collaboration among foreign-invested enterprises. Actively promote 'Internet plus government services', further improve the 'double random, one open' regulatory mechanism, and build an efficient and convenient foreign investment in the event and post supervision and service system. Strengthen the interconnection and exchange of information management systems between business departments and departments such as industry and commerce, customs, quality inspection, and foreign exchange, and achieve cross level and cross departmental sharing of information related to the establishment and operation of foreign-invested enterprises. Pilot a new model of 'single window, single form' acceptance for business registration and industrial and commercial registration of foreign-invested enterprises. (The Ministry of Commerce, General Administration of Customs, State Administration for Industry and Commerce, General Administration of Quality Supervision, Inspection and Quarantine, State Administration of Foreign Exchange and other relevant departments are responsible, and local people's governments are responsible according to their respective responsibilities)
(19) Encourage foreign investment to participate in the optimization and restructuring of domestic enterprises. Simplify procedures, relax restrictions, and support foreign investors to establish foreign-invested enterprises through mergers and acquisitions. Support domestic enterprises to introduce international advanced technology, management experience, and marketing channels through multiple channels. Encourage foreign investment to participate in the mixed ownership reform of state-owned enterprises. (The National Development and Reform Commission, Ministry of Commerce, and State owned Assets Supervision and Administration Commission of the State Council shall be responsible according to their respective responsibilities)
(20) Improve the protection of intellectual property rights for foreign-invested enterprises. We will carry out centralized rectification of intellectual property issues such as online infringement and piracy, infringement of patent rights, and infringement of trademark exclusive rights, strengthen judicial protection and administrative law enforcement, and increase punishment for infringement and illegal activities. (The National Leading Group Office for Combating Infringement and Counterfeiting, the State Administration for Industry and Commerce, the State Administration of Press, Publication, Radio, Film and Television, the China National Intellectual Property Administration, etc. shall be responsible according to the division of responsibilities)
(21) Enhance the international competitiveness of the research and development environment. Create convenient conditions for the operation of R&D centers, simplify the import procedures for qualified R&D center samples, reagents, etc. in accordance with the law, and promote foreign R&D investment. (The General Administration of Customs, General Administration of Quality Supervision, Inspection and Quarantine, etc. shall be responsible according to their respective responsibilities)
(22) Maintain the stability and continuity of foreign investment policies. Local people's governments at all levels should strictly fulfill the policy commitments made to investors and foreign-invested enterprises in accordance with the law, and conscientiously fulfill various contracts signed in investment promotion and other activities in accordance with the law. (Responsible for each provincial-level people's government)
All regions and departments should attach great importance to the utilization of foreign investment in the new situation, take the initiative and cooperate closely according to their respective responsibilities. The Ministry of Commerce, in conjunction with relevant departments, should strengthen supervision and inspection to ensure that all measures are implemented, continuously enhance China's new advantages in attracting investment, and promote the stable growth of foreign investment utilization.
the State Council
August 8, 2017
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