China State Council issued new guidelines issued with the aim to maximize China’s foreign investment and also to attract more foreign investors to invest on Sunday, August 13th.
The newly-issued guidelines consist of 24 guidelines that were made to increase the protection of the rights and interests of foreign investors, including amplifying enforcement of intellectual property rights or maybe usually known as copyright. There are also new guidelines that govern the increase fiscal support and tax incentives for foreign-invested enterprises, such as temporarily exempting withholding income tax for foreign investors’ reinvestment of their profits into China.
These new guidelines are said to be a “convenient and secure management mechanism” for cross-border data flows. The timing of the issuance guidelines can be considered as a perfect timing, since the new guidelines emerge in the middle of tensions between authorities and international enterprises, including global accounting firms, over data security.
As we all know, the Covid-19 pandemic has made the global economy situation in an upside down state. And China, one of the biggest nations in the world, is not an exception. China has been trying to withdraw foreign capital because of its economic recovery since the number of exports dropped drastically.
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However, since the endemic has begun this past year, China has started to experience its economic recovery. And by issuing the new bidding guidelines made for foreign investment, the China State Council hopes that the guidelines can increase exports number, and bring back China’s pre-pandemic number of exports.
