Chinese localities roll out measures to attract more foreign investment

Multiple Chinese localities have been rolling out measures to further attract foreign investment and promote opening-up, as Shenzhen in South China's Guangdong Province on Wednesday made the latest move to implement incentives targeting qualified foreign enterprises for expanding local investment and setting up headquarters in the city.

Specifically, foreign-funded enterprises - with newly added actual foreign capital reaching $50 million or above in 2023 and 2024 - will be granted incentives at rates up to 3 percent, 2 percent, or 1 percent of the incremental investment amount depending on industry classification, excluding companies in the financial and real estate sectors, with a maximum reward of 50 million yuan ($6.89 million) per company, according to a notice released on Wednesday.

Shenzhen will also support foreign-invested multinational corporation headquarters in expanding local investments. Qualified firms setting up regional headquarters in Guangdong and Shenzhen while investing actual foreign capital of $10 million or more in 2023 and 2024 will be given a reward of 5 million yuan.

On Tuesday, Guangzhou's Nansha district in Guangdong issued a notice to optimize the business environment for foreign investment while stepping up corresponding efforts to expand its local appeal with 18 measures.

The notice vowed to encourage multinational corporations and foreign investors to set up investment companies, regional headquarters or headquarters-type organizations in Nansha, and it said that enterprises invested in and established by the relevant investment companies may enjoy the treatment of foreign-invested enterprises in accordance with relevant state regulations.

It also vowed to steadily promote the opening-up of key sectors such as services, advanced manufacturing, and biomedicine.

The notice proposed supportive measures covering a wide range of fields from ensuring national treatment for foreign investment and optimizing the service mechanism to enhancing the attractiveness of foreign investment, through means including strengthening fiscal and tax support as well as improving financial support.

Encouraging foreign firms to set up regional headquarters will promote a sustainable inflow of foreign investment for Chinese localities, which will help enhance local competitiveness by boosting industrial upgrading, advancing innovation and offering more jobs, Wang Peng, an associate research fellow at the Beijing Academy of Social Sciences, told the Global Times on Wednesday.

Chen Huarong, an official from Central China's Hubei Province, said on Monday that the province will accelerate the construction of "the inland new coast" and attract foreign investment more vigorously, Chinanews.com reported.

Chen said that Hubei will enhance services for foreign-invested enterprises, providing equal support for both domestic and foreign-funded companies to participate in large-scale equipment upgrades and government procurement. Key foreign-funded projects will receive intensified follow-up services, with policy support and factor guarantees granted by laws and regulations.

The 2025 Government Work Report said that the country will vigorously encourage foreign investment.

China will ensure national treatment for foreign-funded enterprises in areas such as access to production factors, license applications, standard setting and government procurement. Foreign investors will receive better services and support, and the launch of landmark investment projects will be expedited. "These efforts will help make China a favored destination for foreign investment," according to the Government Work Report.

When it comes to China's major advantages for expanding high-quality opening-up this year, Wang highlighted aspects such as its vast market potential, complete industrial system, optimized business environment and sustainable innovation capability.

Speaking on the sectors that could possibly draw more foreign participation, Wang said that industries represented by China's advanced manufacturing, modern services sector, high-tech industries and green sectors all have unleashed the potential for bringing in more foreign capital with growing innovation and market demand.

In February, China issued an action plan to stabilize foreign investment in 2025, including various supportive measures such as lifting restrictions on domestic loans for foreign-invested enterprises and allowing these firms to use domestic financing for equity investments