The State Council has urged China’s business community to intensify its efforts to attract foreign investment, while looking to create an enhanced environment for ‘opening up’ at the highest level. The meeting of its executive on 28 July also emphasised the importance of creating a legally-compliant international business environment, while utilising higher levels of overseas investment in order to implement new developmental concepts, advance structural reforms on the supply side, promote sustained economic growth at a medium to high rate and to move to the medium- to high-end with regards to industrial development.

In more specific terms, the following four measures were also adopted:

1. The assumption of national treatment for overseas investors, except for instances detailed on a negative list, which has already been trialled in the pilot free trade zones, is to be introduced across the country. At the same time, steps are to be taken to accelerate the implementation of the “single window and single form” approach for the registration and record filing of overseas enterprises.

2. Deferred tax payment is to be permitted for those overseas investors who directly invest in government-designated projects, provided that the required funds are derived from the profits of an enterprise resident on the mainland. In such an instance, the overseas investor in question will also be temporarily exempt from withholding tax.

3. Enterprise income tax incentives for technologically advanced service enterprises are to be extended on a national basis following a successful trial carried out by the demonstration cities for service outsourcing.

4. The process of securing work permits for foreigners is to be simplified, while the scope of work visas is to be expanded.

These measures are expected to be fully implemented before the end of September.

For further details (in Chinese), please refer to the following website:

Li Keqiang Chairs State Council Executive Meeting (28 July 2017)