On Sunday, China’s State Council released rules that it claimed would significantly improve the nation’s environment for foreign investment and draw in more of it.
In a paper with 24 suggestions, the State Council recommended that authorities boost the enforcement of intellectual property rights as well as the protection of the rights and interests of foreign investors.
A temporary exemption from withholding income tax for foreign investors who reinvest their profits in China was among the instructions for increased fiscal assistance and tax benefits for foreign-invested businesses that were stated in the paper.
The State Council announced that it would look into developing a “convenient and secure management mechanism” for international data transfers. The suggestion comes at a time when worldwide businesses, particularly global accounting companies, and regulators are at odds over data security.
China has made an effort to attract foreign investment as the country’s recovery from the COVID pandemic drags on due to weak export demand from important trading partners and persistent turmoil in the real estate sector.
Beijing has had difficulty luring foreign businesses and investors so far because they are wary of political risk in a setting where national security measures are given more priority and concerned about how the deteriorating relations between China and many Western nations will affect their operations.
