Foreign Direct Investment

A new regulation from the foreign exchange regulator has returned the right of foreign-invested holding companies to re-invest their dividends in China

New regulatory opinions address common issues faced by Chinese companies when restructuring. They may also make things easier for foreign-invested companies

Lawful renminbi income may be used directly for domestic investment.

The Catalogue has been revised since the 2007 revision. Venture investment enterprises and intellectual property services are added to the encouraged category while the manufacture of assembled automobiles is removed from the category.

A close look at China's newly-updated foreign investment catalogue reveals trends that reinforce the government's policy objectives. Numerous new additions encourage investment in seven strategic emerging industries, while the catalogue scales back on encouraging investment in lower technology and lower value-added sectors.

A close look at China's newly-updated foreign investment catalogue reveals trends that reinforce the government's policy objectives. Numerous new additions encourage investment in seven strategic emerging industries, while the catalogue scales back on encouraging investment in lower technology and lower value-added sectors.

Including: National Development and Reform Commission, Foreign Investment Industrial Guidance Catalogue (Revised in 2011) (Full translation available in the Feb issue)

Tax policy continued to encourage R&D institutions.

Tax policy continued to encourage foreign-invested R&D institutions.