The conditions for foreign direct investment in China mainly include compliance with Chinese laws and regulations, compliance with market access policies, respect for China’s national security and social public interests, etc. Here is an overview of some specific conditions and measures:
1. Compliance with laws and regulations: Foreign investors and foreign-invested enterprises conducting investment activities within the territory of China shall comply with Chinese laws and regulations.
2. Negative list for market access: China implements a pre admission national treatment plus negative list management system. The negative list specifies the areas where foreign investment is prohibited or restricted. China provides national treatment to foreign investment outside the negative list.
3. Investment promotion policies: China encourages foreign investment in specific industries, fields, and regions, and can enjoy preferential treatment in accordance with the law.
4. Investment protection: China protects the investment, income, and other legitimate rights and interests of foreign investors in accordance with the law, including not imposing expropriation on foreign investors’ investments, unless necessary for the public interest, and providing compensation in accordance with the law.
5. Foreign exchange management: The profits and dividends of foreign-invested enterprises can be remitted overseas in accordance with the law after paying corporate income tax and withdrawing statutory surplus reserves.
6. Investment approval and filing: Whether the establishment of foreign-invested enterprises requires approval and filing depends on whether it involves negative lists and the requirements of related industries.
7. Optimizing the business environment: China is committed to creating a stable, transparent, predictable, and fair competition market environment, including optimizing the fair competition environment, cleaning up behaviors and policy measures that violate fair competition.
8. Support research and innovation: China supports foreign-invested enterprises to establish research and development centers in China, participate in technology research and industrialization applications, and encourage them to undertake major scientific research and development projects.
9. Investment liberalization and facilitation: China continues to promote the opening up of telecommunications, healthcare and other fields, allowing eligible foreign-invested enterprises to issue RMB bonds for financing within the country.
10. Service guarantee: China provides service guarantee for foreign-invested enterprises, including optimizing the management of foreigners’ working and residence permits in China, and facilitating the exchange of international business personnel.
These conditions and measures reflect China’s positive attitude in attracting foreign investment and continuously optimizing the business environment.
