A worker operates at Bosch Hydrogen Powertrain Systems (Chongqing) Co., Ltd. in southwest China's Chongqing Municipality on April 19, 2024. (Photo/Xinhua)
Southwest China's Chongqing Municipality has launched a comprehensive plan to enhance its foreign investment environment, aiming to create a market-oriented, law-based, and international business atmosphere. Announced at the end of April 2024, the plan is designed to attract and effectively utilize foreign investment, offering 24 policies and 51 specific measures tailored to the city's unique circumstances.
Chongqing's plan emphasizes the enhancement of foreign capital utilization by focusing on expanding its openness to international investment. The plan proposes a series of measures designed to increase foreign investment in key sectors, leveraging Chongqing's role as a pilot demonstration zone for service sector expansion. By broadening the channels for attracting foreign capital, the city aims to support the phased transfer of foreign-invested enterprises and improve the mechanisms for advancing foreign investment projects.
One of the primary strategies involves encouraging foreign investors to establish research and development centers in Chongqing. This initiative aims to foster collaboration between foreign-invested enterprises and local universities and research institutions, thereby enhancing technological research and facilitating the transformation of research results. The plan seeks to promote industry-academia-research cooperation and the cultivation of innovative talents.
Moreover, Chongqing intends to support eligible foreign R&D institutions in applying for municipal-level science and technology projects. The city is also encouraging foreign-invested enterprises to conduct clinical trials for cell and gene therapy drugs already approved overseas, in accordance with relevant laws and regulations.
To ensure a level playing field, enterprises established by foreign investment companies in Chongqing will receive the same treatment as other foreign-invested enterprises. This includes benefits such as income tax and tariff reductions, aligning with national regulations and promoting an equitable investment environment.
Chongqing's new plan includes measures to ensure that foreign-invested enterprises receive national treatment, thereby participating equally in the local economy. By rigorously implementing various policies from the Ministry of Finance, Chongqing aims to guarantee that these enterprises can legally engage in government procurement activities, contribute to standard-setting processes, and benefit from support policies on an equal footing with domestic companies.
The plan supports foreign-invested enterprises in innovating and developing globally competitive products through initial purchase and subscription measures. This approach is designed to foster innovation and enhance the global competitiveness of products developed in Chongqing.
Additionally, the plan ensures that foreign-invested enterprises can participate equally in municipal professional standardization technical committees. They will be involved in the formulation and revision of standards, promoting equality between domestic and foreign investments. This inclusion is vital for creating a fair and balanced business environment where all enterprises can contribute to and benefit from the city's economic growth.
To uphold these principles, Chongqing is committed to strictly implementing a fair competition review system. The city will conduct regular supervision, inspection, and evaluation to identify and eliminate regulations and measures that contain unreasonable differential treatment between domestic and foreign investment. By fostering a level playing field, Chongqing aims to attract more foreign investors and enhance its reputation as a business-friendly city.
Chongqing's plan places a strong emphasis on protecting foreign investments, particularly in the area of intellectual property rights. The plan outlines measures to enhance mechanisms for safeguarding the rights of foreign investors, strengthening administrative protections, and boosting law enforcement efforts related to intellectual property. Additionally, it aims to regulate the formulation of foreign-related economic and trade policies and regulations.
One of the key components of this initiative is the use of the Chongqing One-stop Diversified Dispute Resolution Center for International Commercial Affairs. This center will play a crucial role in improving and optimizing the mechanisms for addressing international commercial disputes, ensuring that they are handled effectively and fairly.
The plan also includes firm measures to crack down on illegal activities that infringe on the intellectual property rights of foreign-invested enterprises. Chongqing is committed to organizing continuous special actions, such as enforcing anti-unfair competition laws, to protect these rights and create a secure environment for foreign investors.
When developing foreign-related economic and trade policies, the plan emphasizes the importance of considering their necessity, feasibility, and legality. Chongqing aims to listen to the opinions of foreign-invested enterprises, conducting legality reviews, fair competition reviews, and trade policy compliance reviews as required. By setting reasonable transition periods, the city seeks to enhance the transparency and predictability of its policies, making it easier for foreign investors to navigate the regulatory landscape.
Chongqing's plan addresses the key concerns of foreign investors by enhancing the facilitation of investment operations. The plan focuses on optimizing the entry and exit processes for foreign nationals, managing cross-border data transfers, and improving law enforcement inspections for foreign-invested enterprises. To achieve these goals, the plan outlines several measures designed to create a more investor-friendly environment.
The city aims to continuously optimize entry-exit policies and measures, promoting the development of inbound tourism and enhancing the convenience of visa clearance, international travel, and payment processes. Special "green channels" and "urgent handling" services will be provided for eligible foreign executives and technical personnel, ensuring that their entry and exit processes are as smooth as possible.
Chongqing also plans to implement measures to make it easier for high-level foreign talent to apply for permanent residency. This includes facilitating the entry and exit of foreign executives and technical talents for eligible foreign-invested enterprises. Additionally, the city is promoting a new version of the permanent residence ID card for foreigners, making it easier to apply and upgrade.
The service system for key foreign-invested enterprises will be improved by establishing a coordinated mechanism for major and key foreign investment projects at the municipal level. This initiative aims to strengthen the coordination and management of key projects at both municipal and district/county levels, providing comprehensive services throughout the investment cycle. By enhancing these services, Chongqing seeks to create a supportive environment for foreign investors, encouraging more international businesses to establish operations in the city.
Chongqing's plan to enhance fiscal and tax support is designed to attract more foreign investment projects and reduce funding costs for enterprises. The plan includes a range of measures aimed at strengthening financial support for foreign investors, encouraging reinvestment within China, implementing relevant tax incentives, and supporting investments in nationally encouraged areas.
One of the key strategies involves supporting districts and counties in providing assistance to important foreign investment projects within their legal authority. By empowering local governments to offer targeted support, Chongqing aims to create a more favorable environment for foreign enterprises looking to establish or expand their presence in the region.
The plan also outlines specific tax incentives for eligible foreign investment projects. These include confirming tax exemptions for self-use equipment imported as part of the total investment, along with associated technology, ancillary parts, and spare parts. These exemptions are intended to lower operational costs and encourage further investment, provided the items are not listed in the relevant non-tax-exempt directories.
By implementing these fiscal and tax support measures, Chongqing seeks to create an attractive and competitive environment for foreign investors, aligning with national economic development goals and fostering long-term growth and collaboration.
Chongqing's plan includes comprehensive strategies to improve foreign investment promotion methods, aiming to enhance the city's global appeal and competitiveness. To achieve this, the plan proposes measures to refine investment attraction mechanisms, facilitate overseas promotion efforts, expand promotional channels, and optimize the evaluation of investment promotion activities.
A significant focus is on increasing efforts to attract investment from key countries, regions, and critical industry sectors. To this end, Chongqing plans to host a series of "Invest in Chongqing" brand events designed to draw foreign investors and showcase the city's unique advantages and opportunities.
The plan also prioritizes key investment promotion groups in outbound plans, ensuring their participation in overseas investment activities, conferences, and exhibitions. By strengthening communication and cooperation with foreign investors, Chongqing aims to build lasting relationships and foster new business opportunities.
To further support these efforts, the city will facilitate the application process for multiple-entry business visas for personnel involved in major and key foreign investment projects. This will streamline international travel for business purposes and encourage ongoing collaboration.
Chongqing is also committed to strengthening cooperation with Chinese embassies and consulates abroad, as well as the Ministry of Commerce and overseas economic and trade investment promotion agencies of the China Council for the Promotion of International Trade. By optimizing the global investment network, Chongqing seeks to enhance the effectiveness of its overseas investment attraction efforts, positioning itself as a leading destination for international business.
(Qi Xiaofang, as an intern, also contributed to this article.)
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