Email
Wechat
Facebook
@shhqcbd
Twitter
@shhqcbd
TicTok
@shhqcbd
Setting Up in Hongqiao
Home > Setting Up in Hongqiao>Policies

China unveils 12 new measures to encourage foreign reinvestment

LMS
chinadaily.com.cn| Updated: July 23, 2025

4f42e889f8ff571d97571fb1742696a6.jpg

Shanghai is a premier destination for foreign investment. [Photo/VCG]

China unveiled 12 targeted measures on July 18 to further attract and utilize foreign investment, with a specific focus on encouraging foreign enterprises to reinvest in the domestic market.

The new document, jointly issued by the National Development and Reform Commission and six other central departments, calls on local governments to establish project databases tailored for reinvestment by foreign enterprises and to enhance support and services for such projects. Eligible reinvestment projects will be included in the country's major or key foreign investment project lists, granting them access to relevant support policies.

To lower upfront costs, foreign companies reinvesting in China will be allowed to make flexible use of industrial land through long-term leasing, lease-before-transfer arrangements and land transfers with flexible durations, in line with existing policies that encourage investment.

The notice also emphasizes the importance of implementing and enforcing tax incentives to promote foreign reinvestment in China. Foreign-invested projects in line with the catalog of encouraged industries for foreign investment will benefit from preferential policies related to the importation of equipment.

Additionally, foreign enterprises that use legally generated foreign exchange profits, and overseas investors that use foreign exchange profits lawfully obtained within China for domestic reinvestment, may transfer the relevant foreign exchange funds within the country in accordance with regulations.

Under the document, the country pledges to streamline the approval process and offer "green channel" management for eligible reinvestment funding sources such as shareholder loans from foreign affiliates and panda bonds, or yuan-denominated bonds issued by overseas institutions in the Chinese onshore market. Financial institutions are also encouraged to innovate products and services, under prudent risk management, to support foreign firms' reinvestment activities.

Top News

Advanced air mobility products make global debuts at Shanghai expo

Shanghai Midea Global Innovation Park opens in Hongqiao CBD

Shanghai ramps up measures to further attract investment

Most Requested
Business in Hongqiao
CIIE
Transportation hub
YRD
BACK TO THE TOP
Copyright© Shanghai Hongqiao
International Central Business District.
All Rights Reserved. Presented by China Daily.