News & Insights

China Subsidy Exchange

August 9, 2017

China Is to Issue New Supporting Measures to Attract Foreign Capital and Private Capital


At the State Council’s Executive Meeting held on July 28, 2017, China’s Premier Li Keqiang announced five supporting measures to attract foreign capital and four supporting measures to encourage domestic private investment.

For foreign capital, China is to promote the negative list mechanism; allow deferred tax for foreign investors’ re-investment with profit obtained from Chinese companies; eliminate or loosen market access restrictions in certain manufacturing and service industries; guarantee land use for foreign investment projects in national-level development zones and increase government fiscal support for projects in technology and environmental protection areas at national-level development zones located in western and northeastern China; and simplify work authorization for foreign workers. These five measures are expected to be in place by the end of September.

To boost private investment, the State Council calls on relevant government agencies to simplify administrative procedures for reviewing new private investment projects; encourages private firms to participate in key programs including “Made in China 2015” program; prohibits financial institutions to add additional lending conditions and encourages local governments to set up credit loan risk compensation funds to support small and medium-sized enterprises and technology-intensive enterprises; and calls on local governments to strictly implement government policies and promises.