China FDI Monitoring
Background
China has introduced several new policies to boost foreign direct investment. It comes as a response to a steep decline in FDI levels since 2022. The new measures aim to reverse the negative trend by creating an attractive landscape for foreign-invested enterprises (FIEs) through various incentives.
Monitoring
Danish Industry is closely monitoring the implementation of the FDI policies. Our focus is on whether the central government is honoring its promises, and if local governments are capable of providing the required support. We keep you updated about important developments.
Top-10 FDI Policies
Government procurement
Goal: Ensure that FIEs can participate in China’s government procurement process under the same terms as local competitors.
Reinvestment
Goal: Incentivize FIEs to reinvest within China, applying relevant tax benefits to support their growth in sectors encouraged by the state.
Targeted investment
Goal: Attract more priority investments by liberalizing the service industry and leveraging pilot zones.
Investor protection
Goal: Enhance mechanisms to protect the rights and interests of FIEs.
IP protection
Goal: Enforce stronger legal protection of intellectual property rights, increase enforcement to safeguard innovations by FIEs.
Standardization
Goal: Support FIEs in formulating industry standards, ensuring they can benefit from supportive policies alongside domestic firms.
Data compliance
Goal: Explore mechanisms to safely manage cross-border data flows, improve the coordination of law enforcement inspections for FIEs.
Administrative compliance
Goal: Refine administrative procedures for FIEs to provide better support.
Regulatory transparency
Goal: Ensure that regulations affecting FIEs are formulated transparently and consistently.
Travel conditions
Goal: Ease visa restrictions and optimize residence procudures for froeign expats.
