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China

China Unveils 24 Fresh Initiatives to Draw in Foreign Investment

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China’s legislature has released a plan to attract foreign investment, aiming to improve the business environment and expand market access for foreign companies. The plan includes measures to ease administrative burdens and level the playing field for foreign companies, with a focus on key industries like manufacturing and telecommunications. Pilot projects in FTZs will relax restrictions on foreign investment in technological innovation.


China’s legislature has released a new plan to attract foreign investment after a year of falling foreign direct investment inflows. The plan, the latest in a series of efforts to boost foreign capital in China, proposes measures to improve the business environment, ease administrative burdens, expand market access in key industries, and even the playing field for foreign companies. We outline the policy proposals that could benefit foreign companies in the coming years.

The State Council has released a 24-point plan to boost foreign capital in China. The plan, titled the Action Plan to Solidly Promote High-Level Opening Up and Make Greater Efforts to Attract and Utilize Foreign Investment (the “Action Plan”), outlines various measures to attract foreign investment, including expanding market access in key industries, ensuring equal participation of foreign companies in government bidding, and facilitating cross-border data flows.

China has been striving to encourage and support foreign investment in recent years. Efforts ramped up in 2023 when levels of foreign direct investment (FDI) inflows to China fell by 8 percent year-on-year. In July 2023, the State Council issued a similar set of measures that aimed to improve the business environment for foreign companies, with suggestions including measures to strengthen intellectual property rights and ease regulations on cross-border data flows.

In this article, we outline some of the key measures proposed by the State Council to attract foreign investment in 2024.

One of the main measures in the Action Plan is to expand market access for foreign companies by “reasonably reducing” the negative list for foreign investment access. This document lists the industries and sectors that foreign investors are prohibited from participating in, and thus by shortening it, more sectors will become accessible to foreign investors. It was last updated at the end of 2021.

The Action Plan reiterates the directives mentioned in the GWR, stating that the government remove restrictions on foreign investment in the manufacturing sector, and continue to promote the opening up of telecommunications, medical, and other fields.

Meanwhile, the Action Plan also calls for carrying out pilot projects to relax foreign investment access in the field of scientific and technological innovation. This will be carried out in pilot free trade zones (FTZ) such as Beijing, Shanghai, and Guangdong, which will be permitted to select a number of qualified foreign-invested enterprises (FIEs) to expand access in areas such as the development and application of genetic diagnosis and treatment technologies.

This article is republished from China Briefing. Read the rest of the original article.

China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.

China

China Unveils Plan to Upgrade Industrial Equipment

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China unveiled a comprehensive action plan for upgrading industrial equipment, with a focus on driving technological innovation and economic growth. The plan, released on April 9, 2024, aims to enhance competitiveness and sustainability within the manufacturing sector through extensive investment and regulatory support.


China announced an ambitious action plan for industrial equipment upgrading, which aims to drive technological innovation and economic growth through extensive investment and regulatory support.

On April 9, 2024, China’s Ministry of Industry and Information Technology (MIIT) and six other departments jointly released a notice introducing the Implementation Plan for Promoting Equipment Renewal in the Industrial Sector (hereafter referred to as the “action plan”).

Finalized earlier on March 23, 2024, this comprehensive action plan addresses critical issues related to technological innovation and economic development. It reflects China’s proactive stance in enhancing competitiveness and sustainability within its manufacturing sector. The initiative underscores the recognition of industrial equipment upgrading as a top policy priority.

The scope of China’s action plan to upgrade industrial equipment in manufacturing, is extensive, covering various aspects such as:

In line with China’s ambitious goals for industrial modernization and sustainable development, the action plan outlines several key objectives aimed at driving substantial advancements in the industrial sector by 2027.

These objectives encompass a wide range of areas, from increasing investment to enhancing digitalization and promoting innovation, including:

The objectives and key actions proposed in the action plan are summarized below.

This article is republished from China Briefing. Read the rest of the original article.

China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.

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China deepens engagement with new Indonesian president as top diplomat visits Jakarta

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China’s top diplomat met the outgoing Indonesian president and his successor in Jakarta on Thursday, as Beijing deepened its engagement with future leader Prabowo Subianto, amid a competition for regional influence with the United States.

The meeting with Chinese Foreign Minister Wang Yi was part of a joint commitment to advance the partnership between the two countries, said Prabowo, who visited Beijing in early April after his landslide win in the February general election.

“It is a great honor for me to welcome him [Wang] today. Thank you for the kind reception I received in Beijing a few weeks ago,” Prabowo said, according to an Indonesian defense ministry statement.

Chinese President Xi Jinping had invited Prabowo to visit, and the latter accepting the invitation raised eyebrows in Indonesia because no president-elect had made a foreign visit such as this one without being sworn in. China is Indonesia’s largest trading partner.

Wang, too, mentioned Prabowo’s Beijing trip, according to the same statement.

“We really appreciate and welcome Defense Minister Prabowo’s visit to China,” he said.

“We are committed to continuing to increase bilateral cooperation with Indonesia, both in the defense sector and other fields such as economic, social and cultural.”

Wang is scheduled to go to East Nusa Tenggara province on Friday to attend the China-Indonesia High-Level Dialogue Cooperation Mechanism, a process to support more effective bilateral cooperation. His Jakarta stop was the first of a six-day tour that also includes Cambodia and Papua New Guinea.

Chinese Foreign Minister Wang Yi (left) and Indonesian Foreign Minister Retno Marsudi attend a press conference after their meeting at the Ministry of Foreign Affairs in Jakarta, April 18, 2024. (Eko Siswono Toyudho/ BenarNews)

Prabowo and Wang discussed cooperation in the defense industry and sector, with potential measures such as educational and training collaboration, as well as joint exercises, said Brig. Gen. Edwin Adrian Sumantha, spokesman at the Indonesian defense ministry.

In fact, the ministry statement said that “China is Indonesia’s close partner and has had close bilateral relations, especially in the defense sector, for a long time.”

Of course, China has also invested billions of U.S. dollars in infrastructure projects in Indonesia, including as part of Beijing’s Belt and Road Initiative – the Jakarta-Bandung high-speed train, which began commercial operations in October 2023, is one such BRI project.

The two countries have drawn closer during outgoing President Joko “Jokowi” Widodo’s two terms, and Beijing would like that to continue as the U.S. tries to catch up with China’s gargantuan influence in Southeast Asia, analysts have said.

Indonesia, China call for ceasefire in Gaza

Both Indonesia and China shared the same position on Israel’s devastating attacks on Gaza, said Wang’s Indonesian counterpart, Retno Marsudi.

Israel’s air and ground strikes have killed more than 33,000 Palestinians following the Oct. 7 attack on the Jewish state by Palestinian militant group Hamas, which killed around 1,100 Israelis.

“We … have the same view regarding the importance of a ceasefire in Gaza and resolving the Palestinian problem fairly through two state solutions,” Retno told reporters in a joint press conference after meeting with Wang. 

“Indonesia will support full Palestinian membership in the U.N. Middle East stability will not be realized without resolving the Palestinian issue.”

For his part, Wang slammed Washington for repeatedly vetoing resolutions calling for Israel to end the attacks on the Palestinian territory it occupies.

“The conflict in Gaza has lasted for half a year and caused a rare humanitarian tragedy in the 21st century,” Wang told the media at the same press conference, according to the Associated Press.

“The United Nations Security Council responded to the call of the international community and continued to review the resolution draft on the cease-fire in Gaza, but it was repeatedly vetoed by the United States.”

The conflict in the Middle East offered a strategic opportunity for China to further expand its influence in Southeast Asia, said Muhamad Arif, a lecturer in international relations at the University of Indonesia.

“China is trying to strengthen its position as a key player in the region,” Arief told BenarNews.

China could present an alternative approach to the conflict in Gaza, he said, which may find approval in Southeast Asia’s largest country, Indonesia, and other Mulism-majority states in the region, such as Malaysia and Brunei.

BenarNews is an RFA-affiliated online news organization.

Read the rest of this article here >>> China deepens engagement with new Indonesian president as top diplomat visits Jakarta

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New Publication: A Guide for Foreign Investors on Navigating China’s New Company Law

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The sixth revision of China’s Company Law is the most extensive amendment in history, impacting foreign invested enterprises with stricter rules on capital injection and corporate governance. Most FIEs must align with the New Company Law by July 1, 2024, with a deadline of December 31, 2024 for adjustments. Contact Dezan Shira & Associates for assistance.


The sixth revision of China’s Company Law represents the most extensive amendment in its history. From stricter capital injection rules to enhanced corporate governance, the changes introduced in the New Company Law have far-reaching implications for businesses, including foreign invested enterprises (FIEs) operating in or entering the China market.

Since January 1, 2020, the Company Law has governed both wholly foreign-owned enterprises (WFOEs) and joint ventures (JVs), following the enactment of the Foreign Investment Law (FIL). Most FIEs must align with the provisions of the New Company Law from July 1, 2024, while those established before January 1, 2020 have bit more time for adjustments due to the five-year grace period provided by the FIL. The final deadline for their alignment is December 31, 2024.

In this publication, we guide foreign investors through the implications of the New Company Law for existing and new FIEs and relevant stakeholders. We begin with an overview of the revision’s background and objectives, followed by a summary of key changes. Our in-depth analysis, from a foreign stakeholder perspective, illuminates the practical implications. Lastly, we explore tax impacts alongside the revisions, demonstrating how the New Company Law may shape future business transactions and arrangements.

If you or your company require assistance with Company Law adjustments in China, please do not hesitate to contact Dezan Shira & Associates. For more information, feel free to reach us via email at china@dezshira.com.

 

This article is republished from China Briefing. Read the rest of the original article.

China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.

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