The National Development and Reform Commission and other departments issued the "Notice on Implementing Measures to Encourage Foreign-invested Enterprises to Reinvest in China"

On July 18th, the National Development and Reform Commission and other departments issued a notice on implementing measures to encourage foreign-invested enterprises to reinvest domestically. The notice mentioned that, under the condition that foreign-invested enterprises comply with special access management measures for foreign investment and the projects invested in domestically are genuine and compliant, foreign-invested enterprises can carry out domestic reinvestment using foreign exchange capital or RMB funds from their foreign exchange earnings without the need for the invested company or equity transferor to go through the registration procedures for receiving domestic reinvestment. To support foreign-invested enterprises in domestic reinvestment, flexible methods such as long-term industrial land leasing, lease before sale, and flexible lease terms can be adopted to reduce initial land costs. The specific methods will be implemented in accordance with existing policies that encourage and support such activities. The original text: Notice from the National Development and Reform Commission and other departments on implementing measures to encourage foreign investment enterprises to reinvest domestically NDRC Foreign Investment [2025] No. 928 To the governments of provinces, autonomous regions, municipalities directly under the Central Government, and Xinjiang Production and Construction Corps: In order to implement the decisions and arrangements of the Party Central Committee and the State Council, attract and utilize foreign investment more effectively, and encourage foreign-invested enterprises to reinvest domestically, with the approval of the State Council, the following policy measures are now notified for implementation. 1. The measures listed in this notice apply to the following situations: foreign-invested enterprises legally established in China using undistributed profits or foreign investors using legally obtained domestic and foreign currency profits to invest in new enterprises, increase capital in existing enterprises, acquire shares, equity, property shares, or other similar rights of domestic enterprises in China, and investment activities in projects in China. 2. Each region will establish a database of foreign-invested enterprises' domestic reinvestment projects according to actual conditions and provide project service support. Eligible foreign-invested enterprises' domestic reinvestment projects may be included in the list of major and key foreign investment projects and enjoy corresponding support policies. 3. When supporting foreign-invested enterprises in domestic reinvestment, flexible methods such as long-term industrial land leasing, lease before sale, and flexible lease terms can be adopted to reduce initial land costs. Specific methods will be implemented in accordance with existing policies that encourage and support such activities. 4. Foreign-invested enterprises that are newly established in China in a wholly-owned manner may apply for their mother company's industry access permits that have been obtained. For those that meet the basic requirements, industry regulators may optimize and streamline the processing procedures and shorten the processing time in accordance with the law. 5. Implementing and realizing relevant tax support policies in accordance with the law, encouraging overseas investors to reinvest in China, and promoting the formation of more effective investments. 6. Foreign-invested enterprises' projects invested in domestic enterprises that comply with the "Catalog of Encouraged Industries for Foreign Investment" will enjoy relevant support policies for importing equipment. 7. If foreign-invested enterprises reinvest domestically with legally acquired foreign exchange profits or foreign investors reinvest in China with legally obtained foreign exchange profits, the related foreign exchange funds can be transferred domestically in accordance with regulations. 8. Under the condition that foreign-invested enterprises comply with special access management measures for foreign investment and the projects invested in domestically are genuine and compliant, foreign-invested enterprises can carry out domestic reinvestment using foreign exchange capital or RMB funds from their foreign exchange earnings without the need for the invested company or equity transferor to go through the registration procedures for receiving domestic reinvestment. 9. For foreign-invested enterprises that meet the requirements for domestic reinvestment and require loans from related foreign shareholders or "Panda Bonds," the management process will be optimized and included in the "green channel" management. 10. Encourage various financial institutions to innovate products and services under the premise of compliance with laws and regulations and controllable risks, in order to provide financial services and support for foreign-invested enterprises' domestic reinvestment. 11. Promote pilot reporting of foreign-invested enterprises' domestic investment information, strengthen information sharing among departments on foreign-invested enterprises' domestic reinvestment, and provide convenience for enterprises to enjoy relevant support policies. 12. Further optimize the evaluation methods for promoting foreign investment, focusing on the actual contributions of foreign-invested enterprises' domestic reinvestment to economic and social development. This article is adapted from the official website of the National Development and Reform Commission, edited by GMTEight: Liu Jiayin.