Latest news with #reinvestment
Zawya
4 days ago
- Business
- Zawya
China moves to encourage foreign reinvestment as FDI slumps
BEIJING - China has unveiled new measures to encourage overseas investors to reinvest their profits within the country, its latest efforts to reverse a decline in foreign direct investment. China has in recent months taken a series of measures to boost foreign investment, including opening more sectors to overseas investors, as rising trade tensions due to U.S. tariffs cloud the country's economic outlook. Foreign direct investment in China totalled 358.2 billion yuan ($50 billion) from January to May, down 13.2% from the same period last year, data issued by the commerce ministry showed. Foreign investors are encouraged to reinvest in China, including setting up new firms, increasing capital in existing companies and acquiring shares in Chinese firms, according to a notice issued by several government agencies. The agencies include the state planner, the finance ministry and the commerce ministry and the central bank. China has already introduced tax incentives to encourage foreign companies to reinvest profits earned in the country. Local governments will establish project databases for reinvestment by foreigners and provide project services and support, according to the notice. China will also support foreign investors in using flexible methods such as long-term leasing of industrial land, lease-before-transfer when reinvesting, to help reduce land costs, the agencies said. To further ease investment processes, approval procedures for foreign shareholder loans and Panda Bonds required for eligible reinvestment by foreign firms will be simplified, according to the notice. China's financial institutions have also been tasked with developing innovative products and services to support reinvestment by foreign enterprises, it said. ($1 = 7.1794 Chinese yuan renminbi)
Reuters
4 days ago
- Business
- Reuters
China moves to encourage foreign reinvestment as FDI slumps
BEIJING, July 18 (Reuters) - China has unveiled new measures to encourage overseas investors to reinvest their profits within the country, its latest efforts to reverse a decline in foreign direct investment. China has in recent months taken a series of measures to boost foreign investment, including opening more sectors to overseas investors, as rising trade tensions due to U.S. tariffs cloud the country's economic outlook. Foreign direct investment in China totalled 358.2 billion yuan ($50 billion) from January to May, down 13.2% from the same period last year, data issued by the commerce ministry showed. Foreign investors are encouraged to reinvest in China, including setting up new firms, increasing capital in existing companies and acquiring shares in Chinese firms, according to a notice issued by several government agencies. The agencies include the state planner, the finance ministry and the commerce ministry and the central bank. China has already introduced tax incentives to encourage foreign companies to reinvest profits earned in the country. Local governments will establish project databases for reinvestment by foreigners and provide project services and support, according to the notice. China will also support foreign investors in using flexible methods such as long-term leasing of industrial land, lease-before-transfer when reinvesting, to help reduce land costs, the agencies said. To further ease investment processes, approval procedures for foreign shareholder loans and Panda Bonds required for eligible reinvestment by foreign firms will be simplified, according to the notice. China's financial institutions have also been tasked with developing innovative products and services to support reinvestment by foreign enterprises, it said. ($1 = 7.1794 Chinese yuan renminbi)
Yahoo
4 days ago
- Business
- Yahoo
China moves to encourage foreign reinvestment as FDI slumps
BEIJING (Reuters) -China has unveiled new measures to encourage overseas investors to reinvest their profits within the country, its latest efforts to reverse a decline in foreign direct investment. China has in recent months taken a series of measures to boost foreign investment, including opening more sectors to overseas investors, as rising trade tensions due to U.S. tariffs cloud the country's economic outlook. Foreign direct investment in China totalled 358.2 billion yuan ($50 billion) from January to May, down 13.2% from the same period last year, data issued by the commerce ministry showed. Foreign investors are encouraged to reinvest in China, including setting up new firms, increasing capital in existing companies and acquiring shares in Chinese firms, according to a notice issued by several government agencies. The agencies include the state planner, the finance ministry and the commerce ministry and the central bank. China has already introduced tax incentives to encourage foreign companies to reinvest profits earned in the country. Local governments will establish project databases for reinvestment by foreigners and provide project services and support, according to the notice. China will also support foreign investors in using flexible methods such as long-term leasing of industrial land, lease-before-transfer when reinvesting, to help reduce land costs, the agencies said. To further ease investment processes, approval procedures for foreign shareholder loans and Panda Bonds required for eligible reinvestment by foreign firms will be simplified, according to the notice. China's financial institutions have also been tasked with developing innovative products and services to support reinvestment by foreign enterprises, it said. ($1 = 7.1794 Chinese yuan renminbi) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
South China Morning Post
01-07-2025
- Business
- South China Morning Post
China rolls out tax incentives to win back foreign investors amid EU, US trade tensions
China has stepped up efforts to attract foreign investors, as policymakers look to bolster the domestic economy and safeguard its position in global supply chains amid negotiations with major trade partners. New tax breaks unveiled this week aim to encourage foreign firms to reinvest profits locally – part of a broader effort to restore confidence and signal openness as challenging trade talks continue with the European Union and United States. The Ministry of Commerce, the Ministry of Finance and the State Taxation Administration jointly announced the new incentives in a statement on Monday. Foreign companies that choose to reinvest profits earned in China back into local operations will be able to deduct their onshore tax by an amount equivalent to 10 per cent of the reinvested sum. Any unused credits can also be carried forward until the end of 2028. Eligible reinvestments include capital injections into domestic firms, such as establishing new entities or acquiring equity from non-affiliated parties – though purchases of publicly listed shares are excluded. Foreign investors can also apply retroactively for qualifying reinvestments made since January 1, 2025.
