China FDI Monitoring

Background

Since the pandemic, China has introduced several new policies to boost foreign direct investment. FDI levels reached a record low in 2023 following strict lockdowns. The new measures aim to reverse this negative trend by creating an attractive landscape for foreign-invested enterprises (FIEs) through fiscal incentives, equal treatment, and IP protection.

Monitoring

Danish Industry is closely monitoring the implementation of these 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 and encourage you to share your own experiences. 

Top-10 FDI policies

Goal: Ensure that FIEs can participate in China’s government procurement process under the same terms as local competitors.

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Goal: Incentivize FIEs to reinvest within China, applying relevant tax benefits to support their growth in sectors encouraged by the state.

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Goal: Attract priority investments by liberalizing service industry and leveraging pilot zones.

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Goal: Enhance mechanisms to protect the rights and interests of FIEs.                                                

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Goal: Enforce stronger legal protection of intellectual property rights, increase enforcement to safeguard innovations by FIEs.

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Goal: Support FIEs in formulating industry standards, ensuring they can benefit from supportive policies alongside domestic firms.

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Goal: Explore mechanisms to safely manage cross-border data flows, improve the coordination of law enforcement inspections for FIEs.

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Goal: Refine administrative procedures for FIEs to provide better support.

 

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Goal: Ensure that regulations affecting FIEs are formulated transparently and consistently.

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Goal: Ease visa restrictions and optimize residence procedures for foreign expats. 

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