National Development and Reform Commission: Guiding all regions to prioritize promoting domestic reinvestment by foreign-invested enterprises in attracting and utilizing foreign investment work.

Recently, with the approval of the State Council, the National Development and Reform Commission, Ministry of Finance, Ministry of Natural Resources, Ministry of Commerce, People's Bank of China, State Taxation Administration, and State Administration of Foreign Exchange jointly issued the "Notice on Implementing Measures to Encourage Foreign-Invested Enterprises' Reinvestment in China" (hereinafter referred to as the "Notice"). In order to help relevant parties accurately understand and grasp the policy content, the relevant person in charge of the National Development and Reform Commission accepted an interview and answered questions from reporters. The relevant person stated that the issuance of the "Notice" once again demonstrates our welcoming attitude towards multinational companies investing long-term and continuously deepening in the Chinese market. The National Development and Reform Commission will strengthen coordination and guidance with relevant departments to implement the "Notice" effectively. Adhere to departmental coordination and central-local linkage. Work together with relevant parties to enhance policy interpretation and guidance, guide localities to prioritize promoting reinvestment by foreign-funded enterprises in China in the attraction and utilization of foreign investment, emphasize the actual contribution of reinvestment by foreign-funded enterprises to economic and social development, and promote the effectiveness of the encouragement measures. Strengthen collaboration between central and local governments to encourage local authorities to refine working measures in accordance with their responsibilities and authority, continuously improve the convenience of reinvestment, and strengthen support services for reinvestment by foreign-funded enterprises. The original text is as follows: Relevant person in charge of the National Development and Reform Commission answers questions about the "Notice on Implementing Measures to Encourage Reinvestment by Foreign-Invested Enterprises in China" Recently, with the approval of the State Council, the National Development and Reform Commission, Ministry of Finance, Ministry of Natural Resources, Ministry of Commerce, People's Bank of China, State Taxation Administration, and State Administration of Foreign Exchange jointly issued the "Notice on Implementing Measures to Encourage Reinvestment by Foreign-Invested Enterprises in China" (hereinafter referred to as the "Notice"). In order to help relevant parties accurately understand and grasp the policy content, the relevant person in charge of the National Development and Reform Commission accepted an interview and answered questions from reporters. Question: Please introduce the background of the issuance of the "Notice". On April 25th, the meeting of the Central Political Bureau stated that we must firmly expand high-level opening up. The Government Work Report for 2025 proposed to encourage foreign investors to expand reinvestment. Foreign investment is an important part of promoting high-level opening up and plays an important role in developing new productive forces and achieving a Chinese-style modernization. The reinvestment of foreign-invested enterprises in China is an important part of foreign investment. Encouraging foreign-funded enterprises to reinvest in China is of positive significance for attracting and utilizing foreign investment more vigorously. To implement the requirements for deepening the reform of the system and mechanism to promote foreign investment, the National Development and Reform Commission, together with relevant parties, carried out a special action to serve foreign-invested enterprises and studied the promotion of resolving concerns and demands of foreign investors in China. In the process of the special action, many foreign-invested enterprises have reported to us about their situations regarding expanding reinvestment in China and put forward many opinions, suggestions, and policy demands. In response to the new situations and characteristics in the management of reinvestment by foreign-invested enterprises, based on seeking expert opinions, local research, and other methods, we, together with relevant departments, drafted relevant encouragement measures. With the approval of the State Council, the National Development and Reform Commission and other seven departments jointly issued the "Notice". Question: What are the main contents of the "Notice"? The "Notice" is an important document for deepening the reform of the system and mechanism to promote foreign investment and to attract and utilize foreign investment more vigorously, which is conducive to the more targeted work of relevant parties and promoting reinvestment by foreign-invested enterprises in China. First, strengthening project service guarantees. Clearly establish a project library for reinvestment projects by foreign-invested enterprises in different regions according to their actual conditions and provide project service guarantees. Reinvestment projects by eligible foreign-invested enterprises can be included in the list of major and key foreign investment projects and enjoy corresponding support policies. Second, optimizing land resource allocation. Support foreign-invested enterprises to use industrial land through flexible methods such as long-term leasing, lease-before-transfer, and flexible lease terms when reinvesting in China to reduce initial land costs. Specific methods shall be implemented in accordance with existing encouragement and support policies. Third, optimizing and simplifying relevant processing procedures. For foreign-invested enterprises that newly establish wholly-owned legal entities in China, the industry competent authorities may optimize and simplify the processing procedures and shorten the processing time for applying for industry access permits that their parent companies have already obtained if they meet certain conditions. Fourth, implementing and ensuring support policies. Implement relevant tax support policies and encourage overseas investors to reinvest in China to promote more effective investment. The encouraged projects invested by foreign-invested enterprises in China enjoy related support policies for importing equipment. Fifth, facilitating the use of foreign exchange funds. Foreign-invested enterprises can transfer relevant foreign exchange funds domestically for reinvestment using foreign exchange profits legally generated, or foreign investors using foreign exchange profits obtained legally in China. When the prerequisites of complying with special management measures for foreign investment and the realness and compliance of the domestic investment project are met, foreign-invested enterprises can use foreign exchange capital or RMB funds from exchange gains for reinvestment within China without the need for the recipient of the invested enterprise or equity to go through registration procedures for receiving domestic reinvestment. Sixth, enhancing financial support and innovation. For foreign-invested enterprises that require loans from foreign-related shareholders or "Panda bonds" for reinvestment in China, the management process shall be optimized and included in the management of "green channels". Encourage various financial institutions to innovate products and services under lawful compliance and controllable risks to provide financial services and support for reinvestment by foreign-invested enterprises in China. In addition, the "Notice" specifies the application scenarios of the encouragement measures and puts forward requirements for promoting information reporting pilot projects for foreign-invested enterprises' reinvestments, enhancing inter-departmental information sharing, and optimizing the evaluation methods for promoting foreign investment. Question: How will the National Development and Reform Commission better support global multinational companies in long-term investment and continuous deepening in the Chinese market? The issuance of the "Notice" once again demonstrates our welcoming attitude towards multinational companies investing long-term and continuously deepening in the Chinese market. The National Development and Reform Commission will strengthen coordination and guidance with relevant departments to implement the "Notice" effectively. First, adhere to departmental coordination and central-local linkage. Work together with relevant parties to enhance policy interpretation and guidance, guide localities to prioritize promoting reinvestment by foreign-funded enterprises in China in the attraction and utilization of foreign investment, emphasize the actual contribution of reinvestment by foreign-funded enterprises to economic and social development, promote the effectiveness of the encouragement measures. Strengthen collaboration between central and local governments to encourage local authorities to refine working measures in accordance with their responsibilities and authority, continuously improve the convenience of reinvestment, and strengthen support services for reinvestment by foreign-funded enterprises. Second, track the implementation situation. Continue to carry out a special action to serve foreign-invested enterprises, and continue to listen to the actual feelings of foreign-invested enterprises regarding the implementation of various regions through local research, forums, one-on-one visits, etc., research and solve new situations and problems that arise during the policy implementation process, and promptly summarize good experiences and practices from all aspects to promote the expansion of reinvestment by foreign-invested enterprises and effectively enhance the sense of acquisition and satisfaction of enterprises. Third, use a combination of policies effectively. Make good use of the working team for major foreign investment projects, timely introduce new batches of major foreign investment projects, include more reinvestment projects that meet the conditions in the list management and tracking service, open up green channel, and promote the acceleration of project implementation. In conjunction with the current focus areas of concern for reinvestment by foreign-invested enterprises, research and introduce a new version of the "Catalog of Industries Encouraging Foreign Investment" to guide foreign investment to advance more in advanced manufacturing, modern service industries, high-tech, energy conservation and environmental protection, as well as the central and western regions and the northeastern region, forming a greater force to attract and utilize foreign investment. This article is extracted from the official website of the National Development and Reform Commission, edited by: Lifu.