Foreign investment policy in China has been upgraded over the years. On September 26, the State Council announced that it would introduce new measures to attract more foreign investment and improve the country’s business environment. According to the latest rankings from the World Bank, China now ranks 78 out of 190 economies for ease of doing business.
Unified Market Access
According to the latest announcement, China will ensure that foreign and domestic investors will be given unified market access for industries not included in the Negative List.
Large-scale investment projects will be offered land and sea-use approval support, benefit from accelerated environmental impact assessments, and enjoy measures to cut logistics costs.
It is likely that regional governments will develop their own incentive packages to attract and facilitate foreign investment, tailored to their economies and available resources. For instance, Guangdong province recently announced cash rewards of up to RMB 100 million for qualified investment projects and accelerated the market opening of previously restricted industries, among other investment incentives.
Import Tariff Cuts
At the same State Council meeting, it was decided that China would cut import tariffs on 1,585 taxable items, including machinery, textiles, paper products, and construction materials. The move follows other tariff cuts on consumer goods announced earlier this year and near the end of 2017.
In addition, China also reduced tariffs for five Asian countries in July, and hopes to finalize the massive RCEP trade deal by November.
Efficient Customs Clearance
China will streamline and accelerate customs clearance by slashing the number of customs clearance documents from 86 to 46.
Further, compliance costs for container shipments will be reduced by at least US$100 by the end of 2018. China will release a complete list administrative charges at ports by the end of October.
Following the sweeping institutional reform announced earlier this year, responsibility for entry and exit inspection and quarantine was shifted from the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) to the General Administration of Customs (GAC).
Online Filing System
China will establish an online system to manage and regulate foreign investment, which should streamline business management and communication with the government. Earlier this year, the central government directed local governments to adopt a “One Window, One Form” policy to simplify business registration for foreign investors and improve information sharing among government offices.
On June 30, Shanghai launched an online platform for reporting business information. Guangdong province also recently announced plans to fully implement the policy.
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