New Circular on Building a New Development Pattern and Effectively Stabilizing Foreign Investment

On 25 February 2021, the People's Republic of China issued the "Circular on Centering on Building a New Development Pattern and Effectively Stabilizing Foreign Investment". The Circular, which took effect on the same day, demands all trade authorities in the country to fully implement the Foreign Investment Law and its implementing regulations, including pre-entry national treatment and the negative list regime for foreign investors. It also calls for making good use of preferential tax and land policies to attract foreign investment in advanced manufacturing, high-tech technologies, energy-saving and environmental protection industries and emerging industries, as encouraged by the Catalogue of Encouraged Industries for Foreign Investment (2020 Version).

The Circular also confirms that China will further open up industries of the digital economy in the free trade zones, and encourages foreign investors to establish regional headquarters and functional institutions in China for fund management, procurement and sales.

• Type:

  • Entry and establishment (Ownership and control)
  • Promotion and facilitation (Investment facilitation )

• Industry:

  • Not industry specific

• Sources:

  • Lexology, PRC Ministry of Commerce Issues New Notice on Stabilizing Foreign Investment, https://www.lexology.com/library/detail.aspx?g=7790587d-72cf-49d4-9649-33c9a2416f1c, 17 Mar 2021