China's State Council issued a set of 24 guidelines aimed at optimising the nation's foreign investment environment amidst a slowing economic recovery due to weak export demand and domestic property market instability. The guidelines emphasise increased protection of foreign investors’ rights, including stronger enforcement of intellectual property rights. To further attract foreign capital, the document outlines fiscal support and tax incentives for foreign-invested enterprises, including a temporary exemption of withholding income tax on foreign investors’ reinvestment of profits into China. Amid ongoing tensions between Chinese authorities and international firms over data security, the State Council also proposed exploring a “convenient and secure management mechanism” for cross-border data flows. These moves come as Beijing faces challenges in attracting foreign investors who are concerned about political risks and deteriorating China-West relations.
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