China Issues New Measures to Attract Foreign Capital

On January 17, 2017, the State Council of China published a new policy, the Circular of the State Council on Several Measures on Expanding Opening-up and Actively Utilizing Foreign Capital (Guo Fa (2017) No. 5) (the Circular), to further attract foreign investment in China. The Circularcalls for creating a level playing field for foreign investors, loosening market access restrictions in more industries, providing subsidies to foreign invested enterprises (FIEs) undertaking scientific and technological projects or investing in western and central China, providing preferential land treatment to FIEs with efficient land usage, and supporting FIEs to explore ways to obtain financing. The Circular also authorizes local governments to issue local investment promotion policies to attract foreign investors.