Chongqing - Foreign investors can transfer and reinvest funds with less paperwork, eligible technology firms can access more cross-border financing, and patent holders can resolve infringement disputes through a free administrative process, officials said at an October 29 policy briefing.
Foreign representatives attend a briefing on policies affecting international businesses in Chongqing on October 29, 2026. (Photo/Zheng Ran)
About 160 representatives from foreign consulates, business associations, foreign-invested firms and local government joined the briefing, organized by the Chongqing Municipal Commission of Commerce, for practical guidance on navigating China’s investment, patent and tax systems.
The briefing comes amid a recovery in foreign investment in Chongqing. In the first nine months of 2026, the city added 328 foreign-invested enterprises, up 14.69% year on year, while foreign capital actually used rose 26.66%, according to the municipal commerce commission. Investment in services jumped 78.83%, and high-tech industries attracted 34.73% more investment.
Up to $10 million in overseas borrowing for eligible tech firms
Liu Jingbo, an official with the foreign exchange management department of the People's Bank of China Chongqing Branch, explained reforms designed to reduce administrative steps when foreign investors establish businesses or reinvest profits in China.
Under the revised procedures, foreign investors no longer need to complete a separate preliminary-expense registration before opening an account to transfer funds for setting up a business. Eligible funds can be transferred through the account-opening process, reducing paperwork during the initial investment stage.
The reforms also remove a separate registration requirement for domestic reinvestment by foreign-invested enterprises using eligible capital funds or their yuan-converted proceeds. Qualifying foreign-currency profits can also be reinvested without first being converted into yuan solely for that purpose.
Liu said the changes are intended to make legitimate investment transactions more efficient while maintaining oversight of how funds are used.
"The more compliant a business is, the greater the facilitation it can receive," Liu said, describing the risk-based approach used in reviewing certain payments. Banks can reduce the frequency of spot checks for businesses with good compliance records and lower risk levels.
The reforms also expand cross-border financing facilitation for eligible companies. Qualified high-tech enterprises, specialized small and medium-sized enterprises known in China as "little giant" companies, and technology-focused SMEs can access foreign borrowing of up to the equivalent of 10 million U.S. dollars under the relevant framework. Certain other eligible companies may qualify for higher limits, subject to the applicable criteria.
The removal of an audited financial report requirement for relevant financing registrations can also reduce compliance costs for smaller companies. Borrowers must still complete the required foreign-debt registration and use the funds for genuine, compliant purposes.
How foreign firms can seek a patent dispute ruling
For foreign businesses concerned about protecting their technology and intellectual property, Chongqing officials also outlined a faster administrative route for resolving patent infringement disputes.
An official from the Chongqing Intellectual Property Office said the administrative adjudication process is initiated at the request of a party to a dispute. Authorities assess evidence submitted by both sides and issue a decision under the relevant legal framework.
With complete application materials, authorities decide whether to accept a case within five working days. Ordinary cases are generally resolved within three months, while particularly complex cases can take up to six months. The process does not charge administrative adjudication fees.
Companies can submit applications online through "Yukuaiban", Chongqing's government services platform, or apply in person through the city's intellectual property protection center or relevant district-level authorities.
The official emphasized that administrative adjudication does not eliminate judicial review. A party that disagrees with a decision can bring an administrative lawsuit before a people's court.
The process can address infringement involving manufacturing, sales, imports, and products sold through online platforms, subject to the authority's jurisdiction and the evidence presented.
Clearer tax rules for foreign employees and investors
Ran Peng, an official from the Chongqing Tax Service, explained how individual income tax rules apply to foreign employees, executives and shareholders.
A central issue is tax residency. Under China's individual income tax law, a person without a domicile in China generally becomes a tax resident after spending at least 183 days in the country during a calendar year. Tax residents and nonresidents have different tax obligations, so foreign nationality alone does not determine how an individual's income is taxed.
The briefing also covered tax exemptions for qualifying allowances, including housing, meals, relocation, laundry, business travel, home-leave travel, language training and children's education. These benefits are subject to conditions, including reasonable amounts and, where required, reimbursement supported by documentation.
Ran also highlighted a recent change affecting dividends paid to foreign individual shareholders by foreign-invested enterprises. Under the policy explained at the briefing, such dividends are subject to a 20% individual income tax rate from September 1, 2026, with the paying enterprise generally responsible for withholding the tax.
The briefing is part of Chongqing's ongoing efforts to provide foreign businesses with practical guidance on local regulations. The municipal government said it would continue policy briefings and direct visits to foreign-invested companies, aiming to make relevant information easier to access and help businesses resolve operational problems.