Source: The State Department

Actively attracting and utilizing foreign investment is an important part of promoting high-level opening up and building a new system of open economy. In order to further optimize the foreign investment environment, improve the level of investment promotion work, and increase efforts to attract foreign investment, the following opinions are put forward.

一、We will improve the utilization of foreign capital

（一）Increasing efforts to attract foreign investment in key areas. Support foreign investment in setting up research and development centers in China, jointly carry out technology research and development and industrial application with domestic enterprises, and encourage foreign-invested enterprises and their established research and development centers to undertake major research projects. Under the premise of complying with relevant laws and regulations, accelerate the implementation of foreign-invested projects in the field of biomedicine, encourage foreign-invested enterprises to carry out clinical trials of overseas listed cell and gene therapy drugs in China in accordance with the law, and optimize the application procedures for listing registration of drugs produced abroad that are transferred to domestic production. Support foreign-invested enterprises in advanced manufacturing, modern services, digital economy and other fields to carry out vocational education and training with various vocational colleges (including technical colleges) and vocational training institutions.

（二）We will give full play to the leading role of the service sector in opening wider to the outside world. We will align with high-standard international economic and trade rules, and step up pilot and demonstration efforts to further open up the service sector. Encourage the development of intellectual property, equity and related entity assets combined pledge financing, support the standardized exploration of intellectual property securitization. Pilot areas for the transfer of equity investment and venture capital shares will be increased in an orderly manner. We will steadily increase the number of value-added telecom service opening pilot areas in China, such as Internet virtual private network business (foreign ownership does not exceed 50%), information service business (only application store, not including network publishing service), and Internet access service business (only providing Internet access service to users).

（三）We will expand channels for attracting foreign investment. Qualified foreign investors are encouraged to set up investment companies and regional headquarters, and enterprises invested and established by relevant investment companies may enjoy the treatment of foreign-invested enterprises in accordance with relevant state regulations. We will carry out the pilot program for domestic investment by qualified foreign limited Partners (QFLP), establish and improve the QFLP foreign exchange management facilitation system, and support direct domestic investment with the raised overseas RMB.

（四）We will support the gradient transfer of foreign-invested enterprises. Relying on various open platforms such as pilot free trade zones, state-level new areas, and state-level development zones, we will encourage the eastern region, central and western regions, northeast regions, and border regions to explore cooperation in industrial transfer through output value and benefit sharing mechanisms. Enterprises with foreign investment that conduct overall gradient transfer within the territory of China shall be supervised in accordance with the customs credit rating already obtained in the region where they are located.

（五）We will improve the mechanism for promoting the construction of foreign-funded projects. We will improve the mechanism of specialized work teams for major and key foreign-funded projects, strengthen factor support, policy support and service guarantees, and promote the early signing, landing, commencement and operation of foreign-funded projects. We will introduce policies and measures to promote green electricity consumption, and support foreign-invested enterprises to participate more in green certificate trading and trans-provincial and trans-regional green electricity trading.

二、National treatment of foreign-invested enterprises shall be guaranteed

（六）We will ensure that foreign-invested enterprises participate in government procurement activities in accordance with the law. Relevant policies and measures will be introduced as soon as possible to further clarify the specific standards of "production in China". We will study and innovate cooperative procurement methods, and support foreign-invested enterprises to innovate and develop world-leading products in China through measures such as first purchase and order. We will accelerate the revision of the government Procurement Law. We will carry out special inspections to ensure fair participation of business entities in government procurement activities, investigate and punish illegal practices such as differential treatment of foreign-invested enterprises in accordance with the law, and timely report typical cases. If a foreign-invested enterprise believes that its rights and interests have been harmed by government procurement activities, it may file a question or complaint in accordance with regulations, and the financial departments at all levels shall accept and handle it fairly according to law.

（七）We will support foreign-invested enterprises to participate in the formulation of standards on an equal footing according to law. Promote the disclosure of information about the whole process of standard formulation and revision, and ensure that foreign-invested enterprises and domestic enterprises participate equally in the standardization technical committee and standard formulation according to law. Foreign-invested enterprises are encouraged to formulate enterprise standards on their own or jointly with other enterprises to carry out standardized services. We will carry out national trials for standardization of the service sector in pilot and demonstration areas for further opening up the service sector.

（八）We will ensure that foreign-invested enterprises enjoy equal access to support policies. Policies to support industrial development and expand domestic demand promulgated by local governments shall not exclude or discriminate against foreign-invested enterprises and their products and services by limiting brands or using foreign-invested brands as an excuse, and shall not set additional conditions for foreign-invested enterprises and their products and services to enjoy policies, unless clearly stipulated by laws and regulations or involving national security.

三、We will continue to strengthen the protection of foreign investment

（九）We will improve the mechanism for protecting the rights and interests of foreign investors. We will improve the working mechanism for dealing with international investment disputes, consolidate principal responsibilities, strengthen dispute prevention, and properly handle international investment disputes. We will resolutely crack down on malicious speculation that infringes on the legitimate rights and interests of foreign investors by publishing and spreading false, inaccurate and infringing information on the Internet, and seriously investigate and punish relevant responsible institutions and persons in accordance with the law. Establish and improve the working mechanism for coordinating complaints of foreign-invested enterprises at the provincial level, and promote the solution of multi-departmental matters or policy and institutional problems.

（十）Administrative protection of intellectual property rights will be strengthened. We will improve the administrative adjudication system for patent infringement disputes and strengthen the enforcement of administrative adjudication. Support all regions to accept intellectual property applications for copyright, patent, trademark and other intellectual property rights of participating products by relying on intellectual property work stations of the exhibition, and provide effective infringement prevention measures. Strengthen the protection of intellectual property rights in the procurement of drugs and medical consumables, and enterprises participating in procurement activities must independently promise that there will be no violation of the patent law and other laws and regulations. For products involving intellectual property disputes, relevant departments shall strengthen communication and consultation, and carry out procurement activities according to law and regulations; For products that are found to have infringed patents by an administrative decision of the intellectual property department or an effective judgment of the people's court, measures such as refusal to purchase or cancellation of the qualification for election shall be taken in a timely manner.

（十一）Administrative enforcement of intellectual property rights will be intensified. We will resolutely crack down on violations of intellectual property rights of foreign-invested enterprises, and launch special law enforcement actions against cross-regional and chain violations. We will improve the mechanism for rapid and coordinated protection of intellectual property rights, speed up the handling of cases with clear facts and solid evidence in accordance with the law, establish and improve integrated online and offline law enforcement mechanisms, and appropriately simplify procedural requirements.

（十二）Standardize the formulation of foreign-related economic and trade policies and regulations. The formulation of various foreign-related economic and trade policies and measures should focus on enhancing transparency and predictability, listen to the opinions of foreign-invested enterprises in accordance with the law, and set a reasonable transition period for the introduction of new policies and measures.

四、We will improve the facilitation of investment and operation

（十三）We will improve residence and stay policies for foreign employees in foreign-invested enterprises. We will continue to optimize the entry and exit policies and measures, and provide convenience for the entry, exit, stay and residence of foreign executives and technical personnel of foreign-invested enterprises and their families. Guide Chinese embassies and consulates in key investment attracting countries or regions to continue to provide convenience for the application of visas for senior executives of multinational companies, and timely publicize China's entry policies through business agencies abroad. To facilitate the application for permanent residence of foreign senior management and technical personnel employed and recommended by qualified foreign-invested enterprises. Improve the convenience of foreigners' permanent residence ID card application in public transportation, financial services, medical security, Internet payment and other scenarios.

（十四）We will explore a convenient and secure management mechanism for cross-border data flows. We will implement the requirements of the Cybersecurity Law, the Data Security Law, and the Personal Information Protection Law, establish green channels for qualified foreign-invested enterprises, and efficiently conduct exit security assessments of important data and personal information, so as to promote the safe, orderly and free flow of data. To support Beijing, Tianjin, Shanghai, and the Guangdong-Hong Kong-Macao Greater Bay Area in implementing systems such as data exit security assessment, personal information protection and certification, and the filing of personal information exit standard contracts, to explore on a pilot basis the formation of a list of general data that can flow freely, build service platforms, and provide compliance services for cross-border data flow.

（十五）We will coordinate and optimize law enforcement inspections of foreign-invested enterprises. We will coordinate the promotion of "double random and one open" supervision and classified management of credit risks, and further reduce the proportion and frequency of random checks on foreign-invested enterprises with low credit risks. Support areas with conditions to coordinate production safety, environmental protection, product quality and other enterprise-related law enforcement inspection matters, to achieve "one door, check a number of things."

（十六）We will improve service guarantees for foreign-invested enterprises. We will establish and improve the round table conference system for foreign-invested enterprises. Special teams working on major and key foreign-funded projects at all levels have established and improved linkage and coordination mechanisms, and coordinated timely solutions to difficulties and problems encountered in the signing, construction and operation of projects. We will do a good job in issuing certificates of origin under free trade agreements, and facilitate foreign-invested enterprises to enjoy tariff reduction and exemption policies.

五、We will increase fiscal and tax support

（十七）We will strengthen funds for promoting foreign investment. We will increase support for foreign-funded landmark projects through the central Special Fund for Foreign trade and economic development, and promote their implementation as soon as possible. We will improve the use of funds for promoting foreign investment by local governments at all levels, and increase services for attracting investment in key industrial chains. Support all regions in supporting investment projects of key transnational corporations within the scope of their legal authority.

（十八）Foreign invested enterprises will be encouraged to reinvest in China. We will implement the policy of exempting foreign investors from withholding income tax for reinvestment of profits obtained in China, intensify publicity and guidance, guide local commerce and tax departments at all levels to refine the scope of application of the policy, declaration materials and handling procedures, and do a good job in implementing the policy.

（十九）We will implement relevant preferential tax policies for foreign-invested enterprises. Counseling and assisting foreign individuals to enjoy tax exemption preferential policies for housing subsidies, language training fees, children's education fees and other allowances in accordance with relevant state regulations. To guide and assist foreign-funded R&D centers to enjoy the import tax policy of supporting scientific and technological innovation and the VAT refund policy of purchasing domestic equipment in accordance with relevant state regulations.

（二十）We will support foreign-invested enterprises to invest in areas encouraged by the state to develop. Support all regions to implement supporting incentive measures for foreign-invested enterprises that meet the requirements of the catalogue of industries to encourage foreign investment within the scope of their legal authority. We will implement relevant supporting policies and measures for duty-free import of equipment for encouraged foreign investment projects.

六、We will improve ways to promote foreign investment

（二十一）We will improve the working mechanism for attracting capital. We carried out a series of "Invest in China Year" activities, continued to build the "Invest in China" brand, established and improved working mechanisms, and guided and served local governments in promoting foreign investment. We encourage regions where conditions permit to establish investment promotion cooperation mechanisms with relevant countries or regions, and establish investment promotion platforms in various forms. Encourage all regions to explore the implementation of a more effective and flexible employment mechanism and salary system for non-civil servants and non-career establishment positions in foreign investment promotion departments and teams, strengthen the staffing of foreign investment promotion personnel through cross-regional, cross-level and cross-departmental arrangements, and accelerate the establishment of a diversified foreign investment promotion work system. We will promote the formation of a flexible and efficient coordination mechanism for promoting foreign investment with the participation of governments, investment attracting institutions, business associations, intermediaries and leading enterprises in the industrial chain.

（二十二）We will facilitate overseas investment promotion. We will support regional investment promotion delegations to regularly carry out overseas activities to attract investment and participate in exhibitions, and invite foreign investors to China for investment negotiations. For major and key foreign-funded projects, multiple-entry business visas will be issued to project-related foreign personnel according to work needs.

（二十三）We will expand channels for promoting foreign investment. Strengthen the ties between Chinese embassies and consulates and key enterprises in the country or region to promote investment opportunities in China. Support all regions to strengthen communication with foreign trade and investment promotion agencies of the Ministry of Commerce and the China Council for the Promotion of International Trade, give better play to the role of investment promotion agencies (representative offices) set up in their own regions, and strengthen contact and cooperation with foreign trade and investment promotion agencies.

（二十四）We will improve the evaluation of foreign investment promotion. Establish and improve the effectiveness of foreign investment promotion evaluation system, pay attention to the actual contribution of foreign investment to economic and social development, prevent the simple use of the scale of investment and the actual amount of capital as the basis for assessment and relevant enterprises and personnel rewards and punishments, and effectively prevent the promotion of foreign investment "water injection" fraud and vicious competition.

七、Strengthen organization and implementation

All regions, departments and relevant units should resolutely implement the decisions and arrangements of the Party Central Committee and The State Council, raise their political standing, earnestly optimize the foreign investment environment, increase efforts to attract foreign investment, and make every effort to achieve the goal of promoting stability and improving quality with foreign investment. We will encourage all regions to adopt supporting measures in light of local conditions to enhance policy synergy. The Ministry of Commerce should strengthen guidance and coordination with relevant departments and units, publicize policies, implement policies and measures in a timely manner, create a more optimized investment environment for foreign investors, and effectively boost foreign investment confidence.