Opinions of the State Council on Further Optimizing the Environment for Foreign Investment and Increasing Efforts to Attract Foreign Investment
Opinions of the State Council on Further Optimizing the Environment for Foreign Investment and Increasing Efforts to Attract Foreign Investment
Opinions of the State Council on Further Optimizing the Environment for Foreign Investment and Increasing Efforts to Attract Foreign Investment
Guo Fa [2023] No. 11
July 25, 2023
The people's governments of all provinces, autonomous regions, and municipalities directly under the Central Government; and all ministries, commissions, and directly affiliated agencies of the State Council,
Actively attracting and utilizing foreign investment are an integral part of promoting high-level opening-up and building a new system of open economy. The following opinions are hereby given to further optimize the environment for foreign investment, improve the level of investment promotion, and increase efforts to attract foreign investment:
1. General Requirements
Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we should comprehensively apply the spirit of the 20th National Congress of the Communist Party of China, adhere to the general keynote of seeking progress while maintaining stability, and fully, accurately, and comprehensively implementing new development concepts to build a new development paradigm and drive high-quality development. We should better balance domestic and international interests, create a market-oriented, law-based, and international first-rate business environment, fully utilize the advantages of China’s ultra-large-scale market, and attract and utilize foreign investment more vigorously and effectively, so as to advance the opening-up to higher levels and contribute to the comprehensive building of a modern socialist country.
2. Improving the quality of utilizing foreign capital
(1) Increase efforts to introduce foreign capital in key fields. This includes: supporting foreign investors in establishing R&D centers in China and conducting R&D and industrialization application of technologies jointly with domestic enterprises, and encouraging foreign-invested enterprises (“FIEs”) and the R&D centers established by them to undertake major scientific research projects; within the framework of compliance with relevant laws and regulations, speeding up the launch of foreign-invested projects in the field of biomedicine for development and production, encouraging FIEs to carry out clinical trials of cell and gene therapy drugs that have been sold overseas within China in accordance with the law, and optimizing the application procedure for marketing registration applications for drugs that have been manufactured and sold overseas and are to be transferred to China for manufacturing; and supporting FIEs in the fields of advanced manufacturing, modern services, digital economy, etc., in carrying out vocational education and training in collaboration with various vocational colleges (including technician colleges) and vocational training agencies.
(2) Leverage the demonstration, guiding, and driving effects of the comprehensive pilot program of expanding the opening-up in the service sector. This includes: aligning with high-standard international economic and trade rules and increasing the piloting efforts of the comprehensive pilot program of expanding the opening-up in the service sector; encouraging financing through pledging portfolios of intellectual property, equity and related real assets, and supporting the exploration of intellectual property securitization in a regulated manner; increasing, in an orderly manner, the participating regions of the pilot program for the transfer of fund shares from equity investment and venture capital investment; and steadily increasing the participating regions of the pilot program for the opening-up of value-added telecommunication services, such as domestic Internet virtual private network business (with the proportion of foreign investment not exceeding 50%), information service business (limited to application stores and excluding online publishing services) and Internet access service business (limited to the provision of Internet access service to users).
(3) Broaden the channels for attracting foreign investment. This includes: encouraging qualified foreign investors to establish investment-oriented companies and regional headquarters, and allowing enterprises invested and established by such investment-oriented companies to be eligible for treatment as FIEs in accordance with relevant national regulations; and further carrying out the pilot program of domestic investment by qualified foreign limited partners (QFLPs), establishing a sound system for the facilitation for QFLPs in the area of foreign exchange control, and supporting the direct use of the RMB funds raised by them overseas in relevant domestic investment.
(4) Support the high-to-low gradient relocation of FIEs.
......
Guo Fa [2023] No. 11
July 25, 2023
The people's governments of all provinces, autonomous regions, and municipalities directly under the Central Government; and all ministries, commissions, and directly affiliated agencies of the State Council,
Actively attracting and utilizing foreign investment are an integral part of promoting high-level opening-up and building a new system of open economy. The following opinions are hereby given to further optimize the environment for foreign investment, improve the level of investment promotion, and increase efforts to attract foreign investment:
1. General Requirements
Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we should comprehensively apply the spirit of the 20th National Congress of the Communist Party of China, adhere to the general keynote of seeking progress while maintaining stability, and fully, accurately, and comprehensively implementing new development concepts to build a new development paradigm and drive high-quality development. We should better balance domestic and international interests, create a market-oriented, law-based, and international first-rate business environment, fully utilize the advantages of China’s ultra-large-scale market, and attract and utilize foreign investment more vigorously and effectively, so as to advance the opening-up to higher levels and contribute to the comprehensive building of a modern socialist country.
2. Improving the quality of utilizing foreign capital
(1) Increase efforts to introduce foreign capital in key fields. This includes: supporting foreign investors in establishing R&D centers in China and conducting R&D and industrialization application of technologies jointly with domestic enterprises, and encouraging foreign-invested enterprises (“FIEs”) and the R&D centers established by them to undertake major scientific research projects; within the framework of compliance with relevant laws and regulations, speeding up the launch of foreign-invested projects in the field of biomedicine for development and production, encouraging FIEs to carry out clinical trials of cell and gene therapy drugs that have been sold overseas within China in accordance with the law, and optimizing the application procedure for marketing registration applications for drugs that have been manufactured and sold overseas and are to be transferred to China for manufacturing; and supporting FIEs in the fields of advanced manufacturing, modern services, digital economy, etc., in carrying out vocational education and training in collaboration with various vocational colleges (including technician colleges) and vocational training agencies.
(2) Leverage the demonstration, guiding, and driving effects of the comprehensive pilot program of expanding the opening-up in the service sector. This includes: aligning with high-standard international economic and trade rules and increasing the piloting efforts of the comprehensive pilot program of expanding the opening-up in the service sector; encouraging financing through pledging portfolios of intellectual property, equity and related real assets, and supporting the exploration of intellectual property securitization in a regulated manner; increasing, in an orderly manner, the participating regions of the pilot program for the transfer of fund shares from equity investment and venture capital investment; and steadily increasing the participating regions of the pilot program for the opening-up of value-added telecommunication services, such as domestic Internet virtual private network business (with the proportion of foreign investment not exceeding 50%), information service business (limited to application stores and excluding online publishing services) and Internet access service business (limited to the provision of Internet access service to users).
(3) Broaden the channels for attracting foreign investment. This includes: encouraging qualified foreign investors to establish investment-oriented companies and regional headquarters, and allowing enterprises invested and established by such investment-oriented companies to be eligible for treatment as FIEs in accordance with relevant national regulations; and further carrying out the pilot program of domestic investment by qualified foreign limited partners (QFLPs), establishing a sound system for the facilitation for QFLPs in the area of foreign exchange control, and supporting the direct use of the RMB funds raised by them overseas in relevant domestic investment.
(4) Support the high-to-low gradient relocation of FIEs.
......