China State Council issues guidelines in bid to increase foreign investment

China State Council issues guidelines in bid to increase foreign investment

BEIJING: China’s State Council issued guidelines on Sunday (Aug 13) that it said would further optimise the country’s foreign investment environment and attract more foreign investment.

The State Council said in a document containing 24 guidelines that authorities should increase protection of the rights and interests of foreign investors, including strengthening enforcement of intellectual property rights.

The document also announced guidelines to increase fiscal support and tax incentives for foreign-invested enterprises, such as temporarily exempting withholding income tax for foreign investors’ reinvestment of their profits into China.

The State Council said it would explore a “convenient and secure management mechanism” for cross-border data flows. The proposal comes amid tensions between authorities and international enterprises, including global accounting firms, over data security.