19.07.10 09:37 Age: 16 yrs
How China Looks to Improve its Utilization of Foreign Investment
July 16, 2010
The State Council recently released its Suggestions to Further Improve the Utilization of Foreign Investment. It encourages a more optimal usage of foreign investment by promoting foreign investment in high-end manufacturing industries, high-tech industries, modern services industries, new energy and energy-saving environmental protection industries. Before the end of 2010, the importation of science and technology products needed by foreign-invested research and development centers, that meet specific requirements, will be exempt from customs duties, import VAT’s, as well as consumption taxes.
• Also the State Council believes that guiding foreign investment to the mid-west regions is necessary. This plan is laid out in the supplement Catalogue of Dominant Industries for Foreign Investment in Mid-west Regions, which mostly discusses labor-intensive projects. Preferential business tax policies will continue to apply to foreign and/or domestically-funded businesses.
Another important strategy is the promotion of diversifying foreign investment. The State Council has a goal of encouraging foreign investment by way of share acquisition, in the reorganization, restructuring, merger & acquisition of domestic businesses.
