State Council’s Circular on Further Optimizing the Foreign Investment Environment and Attracting Foreign Investment
(without prejudice)
State Council Document No. 11, 2023
To the People’s Governments of Provinces, Autonomous Regions, and Municipalities; Ministries and Commissions of the State Council; and Agencies Directly Affiliated to the State Council:
Attracting and utilizing foreign investment is an important part of advancing high-standard opening-up and building a new system for an open economy with Chinese characteristics. To further optimize the environment for foreign investment, enhance investment promotion and foreign investment attraction, the following opinions are hereby presented.
I. General Requirements
Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, it is important to fully implement the guiding principles of the 20th National Congress of the Communist Party of China (CPC), ensure steady development and stable growth, ensure full, accurate, and comprehensive implementation of the new development concept, establish a new development paradigm, promote high-quality development, advance the strategic vision for the great rejuvenation of the Chinese nation in the context of unprecedented transformations in the world, create a market-oriented, law-based, and internationalized business environment, give full play to the advantages of China’s vast market, make greater efforts in attracting and utilizing foreign investment effectively, and make contributions to high-level opening-up and building a modern socialist country in all respects.
II. Enhancing the Quality of Foreign Investment Utilization
1. Intensify efforts to attract foreign investment in key sectors. It’s necessary to encourage foreign-invested enterprises (FIEs) to establish research and development centers in China, collaborate with domestic enterprises on technology research and development and industrial application, and undertake major scientific research projects. It’s crucial to accelerate the implementation of foreign investment projects in the biopharmaceutical sector in compliance with relevant laws and regulations, encourage FIEs in China to conduct clinical trials of cell and gene therapy drugs that are already marketed overseas according to the law, and streamline the application process for the registration of local production of drugs that have been marketed overseas. It’s essential to support collaboration between FIEs in advanced manufacturing, modern services, and the digital economy and vocational schools (including technical training schools) and vocational training institutions.
2. Let the Pilot Demonstration Projects for Greater Openness in the Service Sector lead the way. It’s important to align with international high-standard trade and economic rules, and strengthen the efforts of the Pilot Demonstration Projects for Greater Openness in the Services Sector. It’s critical to encourage the exploration of financing based on assets portfolios that include intellectual property, equity, and entities, and support exploration of the standardization and securitization of intellectual property. It’s vital to gradually expand the regions for piloting the transfer of shares in equity investment and venture capital. It’s substantial to be prudent in expanding the regions piloting the opening-up of value-added telecommunications services, such as domestic Internet Virtual Private Network (VPN) business (with foreign equity not exceeding 50%), information services (limited to app stores, excluding online publishing services), and Internet access services (limited to providing Internet access services to users).
3. Broaden channels for attracting foreign investment. It’s imperative to encourage eligible foreign investors to establish investment companies and regional headquarters, and these enterprises may be treated as FIEs in accordance with relevant national regulations. It’s important to ensure full implementation the Qualified Foreign Limited Partner (QFLP) domestic investment pilot, establish a sound QFLP foreign exchange management facilitation system, and support them in conducting relevant investments with RMB raised abroad.
4. Support transfer of FIEs to China’s inland. Based on opening-up platforms such as free trade pilot zones, national-level new areas, and national-level development zones, it’s pivotal to encourage the transfer of industries from eastern regions to the central and western regions, northeastern regions, and border regions through mechanisms for sharing output value and benefits. FIEs that transfer wholly to China’s inland may continue to be supervised by customs with the credit rating level obtained in their original regions.
5. Improve the mechanism for promoting the construction of foreign-funded projects. It’s crucial to improve the task forces for major and key foreign-funded projects, strengthen support in terms of factors supplies, policies, and service provision, and promote early signing, implementation, construction, and operation of foreign-funded projects. It’s necessary to introduce policies and measures to promote green power consumption, support increased participation by FIEs in green power certificate trading and cross-provincial and cross-regional green power trading.
III. Providing National Treatment for FIEs
6. Allow the participation of FIEs in government procurement activities in accordance with the law. It’s essential to introduce measures to clarify the specific standards for « produced within China ». It’s vital to create new cooperative procurement methods, support FIEs in developing world-leading innovative products in China through first-time purchases and state purchase orders. It’s also important to accelerate the revision of the Government Procurement Law. It’s critical to conduct special inspections to ensure that business entities have fair participation in government procurement activities, penalize differential treatment against FIEs in accordance with the law, and notify the public of typical cases of violation as appropriate. If FIEs believe that their rights and interests have been harmed in government procurement activities, they can raise questions and complaints in accordance with regulations, and financial departments at all levels must accept and handle them fairly in accordance with the law.
7. Support FIEs’ equal participation in standard-setting in accordance with the law. It’s important to ensure information disclosure througout the process of standard formulation and revision, and that FIEs participate equally in standardization technical committees and standard formulation in accordance with the law. It’s vital to encourage FIEs in developing standards on their own or jointly with other enterprises, and provide standard services. It’s appropriate to run national-level service industry standardization trials in the Integrated Demonstration Zones for Greater Openness in the Service Sector .
8. Ensure that FIEs equally enjoy support policies. The policies issued by all regions to support industrial development and expand domestic demand may not exclude or discriminate against FIEs and their products and services by limiting brands or refusing foreign brands, unless there are clear provisions in laws and regulations or concerns over national security.
IV. Strengthening the Protection of FIEs
9. Improve the mechanism for protecting the rights and interests of FIEs. It’s important to improve the mechanism for international investment disputes settlement, strengthen the responsibility of relevant parties, enhance dispute prevention, and properly resolve international investment disputes. It’s imperative to crack down on malicious acts that infringe upon the legitimate rights and interests of FIEs, such as the online publication and dissemination of false and unauthorized information, and investigate and severely punish violations in accordance with the law. It’s vital to establish and improve the FIE complaint and coordination mechanism at the provincial level to help address issues involving multiple departments or policy and institutional changes.
10. Strengthen administrative protection of intellectual property rights. It’s important to improve the administrative ruling system for patent infringement disputes and enhance the enforcement of administrative rulings. It’s critical to support the establishment of intellectual property workstations at exhibitions to accept copyright, patent, trademark, and other intellectual property applications of the exhibits, and provide effective measures for preventing infringement. It’s necessary to strengthen IPR protection in the procurement of medicines and medical consumables and require enterprises participating in procurement activities to commit that there are no violations of patent law and other laws and regulations. For products involved in intellectual property disputes, relevant departments should strengthen communication and consultation, and conduct procurement activities in accordance with the law and regulations. Timely measures must be taken to refuse purchasing or canceling candidacy for products that have been determined infringing by administrative rulings of intellectual property departments or effective judgments of the courts.
11. Intensify administrative law enforcement to protect intellectual property rights. It’s imperative to crack down on infringements of the intellectual property rights of FIEs, and conduct special law enforcement against cross-regional, chain-type infringement. It’s crucial to improve the rapid and coordinated protection mechanism for intellectual property rights, expedite the processing of cases with clear facts and solid evidence in accordance with the law, establish and improve an integrated online and offline law enforcement mechanism, and streamline procedural requirements as appropriate.
12. Standardize the formulation of foreign economic and trade policies and regulations. In the formulation of foreign economic and trade policies and measures, policymakers should increase transparency and predictability, hear from foreign investors, and leave transitional periods before new policies are implemented.
V. Facilitate Investment and Business Operation
13. Optimize policies for the stay and residence of expatriate employees of FIEs. It’s necessary to improve the entry and exit policies to provide convenience for the entry, exit, and residence of expatriate executives, technical personnel, and their families. Guidance should be provided to Chinese embassies or consulates in major source countries of investment to facilitate visa applications for executives of multinational corporations, and the economic and commercial sections of embassies should publicize China’s entry policies in a timely manner. It’s important to provide convenience for qualified senior management and technical personnel employed and recommended by FIEs to apply for permanent residency. It’s also desirable to make it easier for expatriates to use permanent resident card for public transport, financial services, medical insurance, and internet payment.
14. Explore a management mechanism for convenient and secure cross-border data flow. It’s essential to implement requirements of laws such as the Cybersecurity Law, Data Security Law, and Personal Information Protection Law, establish a green channel for qualified FIEs to efficiently conduct safety assessments for the outflow of important data and personal information, and promote secure, orderly, and free data flow. It’s important to support efforts of Beijing, Tianjin, Shanghai, the Guangdong-Hong Kong-Macao Greater Bay Area, and other places to explore the creation of a general list of free flow of data, build a service platform, and provide compliance services for cross-border data flow, as they conduct security assessments for data outflows, verification of personal information, and standard document filing for personal information outflows.
15. Coordinate and optimize law enforcement inspections of FIEs. It’s important to move forward the oversight model using randomly selected inspectors to inspect randomly selected entities and requiring the prompt release of results, while strengthening credit risk classification in the meantime. FIEs with low credit risks should enjoy fewer and less frequent inspections. It’s critical to support regions with the right conditions in coordinating inspections on workplace safety, environmental protection, and product quality, so that the inspections can be done in one go.
16. Improve service provision for FIEs. It’s important to establish and improve the roundtable mechanism with FIEs. Task forces at all levels need to build a coordination system for major and key foreign-funded projects to swiftly resolve difficulties and problems encountered in project signing, construction, and operation. It’s necessary to facilitate the signing of certificates of origin under free trade agreements and provide convenience for FIEs to enjoy tariff benefits.
VI. Increasing Financial and Tax Support
17. Strengthen the funding support for promoting foreign investment. The special central fund for foreign trade and economic relations should be utilized to increase support for landmark foreign-funded projects, and promote their early implementation. Local governments at all levels need to put foreign investment promotion funds to good use by attracting more investments in key industrial chains. Local governments should, within their statutory authority, provide support for investment projects of major multinational corporations.
18. Encourage FIEs to reinvest domestically. It’s important to implement the policies of temporarily exempting witholding income tax on profits reinvested domestically by foreign investors, and intensify publicity and guidance on local commercial and tax authorities to specify the scope of policy application, application documentation, and processing procedures.
19. Implement the preferential tax policies for FIEs. Guidance and assistance should be provided to foreign individuals to enjoy tax benefits for housing subsidies, language training fees, children’s education fees, etc., in accordance with the regulations. Guidance and assistance should also be offered to foreign-funded research and development centers to enjoy tax policies supporting the import of innovative technologies and value-added tax refund policies for domestically purchased equipment in accordance with the regulations.
20. Support FIEs’ investments in the priority areas for China’s development. It’s crucial to support regions, within their statutory authority, in implementing incentives for FIEs with investments in the Catalogue of Encouraged Industries for Foreign Investment. Local authorities need to ensure that tariff exemption policies are delivered for encouraged foreign-invested projects.
VII. Improving Foreign Investment Promotion Methods
21. Improve the investment promotion mechanism. The Ministry of Commerce of China has made 2023 the “Invest in China Year” and will continue to build the “Invest in China” brand. MOFCOM will build work mechanisms to guide and support foreign investment promotion by local governments. Regions with conditions are encouraged to establish investment promotion cooperation mechanisms with other countries or regions, and build investment promotion platforms in various forms. Regions are encouraged to explore more effective and flexible employment mechanisms and compensation systems for non-civil servants and non-institutional positions in the foreign investment promotion departments and teams. They may explore cross-regional, cross-level, and cross-departmental personnel transfers to improve staffing for foreign investment promotion, and build a diversified foreign investment promotion work system, and a flexible and efficient system to coordinate governments, investment promotion agencies, chambers of commerce, intermediary agencies, and industrial chain leaders.
22. Facilitate overseas investment promotion. It’s important to support investment promotion groups from across China in carrying out regular investment attraction activities abroad, and inviting foreign investors to China. For major and key foreign-invested projects, multiple-entry business visas may be issued as needed.
23. Expand channels for foreign investment promotion. It’s essential to strengthen the connection between Chinese embassies and key enterprises in host countries or regions to promote investment opportunities in China. Regional authorities are encouraged to enhance communication with economic and commercial sections of Chinese embassies of the Ministry of Commerce and investment promotion agencies of the China Council for the Promotion of International Trade , leverage the role of overseas investment promotion agencies or representative offices established by local authorities, and strengthen connections and collaboration with international trade and investment promotion organizations.
24. Optimize foreign investment promotion evaluation. It’s important to establish and improve the evaluation system for the effectiveness of foreign investment promotion, with the focus on the actual contributions of investment to economic and social development, and prevent using statistics on investment attraction and paid-in capital as the sole basis for assessment of enterprises and bonus and penalties. It’s imperative to prevent data exaggeration and fabrication, and vicious competition.
VIII. Strengthening Organization and Implementation
To achieve the goal of utilizing foreign investment with stability and quality, all regions, departments, and authorities must be determined in implementing the decisions and plans of the CPC Central Committee and the State Council, raise awareness of their political significance, intensify efforts in optimizing the investment environment and attracting foreign investment. Regions are encouraged to introduce supporting measures according to local conditions to create synergy of policies. The Ministry of Commerce, together with other departments, will strengthen guidance and coordination, policy publicity, take timely measures to implement the policies, and create a better environment for foreign investors to boost their confidence in investing in China.
The State Council of the People’s Republic of China
July 25, 2023
国务院关于进一步优化外商投资环境加大吸引外商投资力度的意见
国发〔2023〕11号
各省、自治区、直辖市人民政府，国务院各部委、各直属机构：
积极吸引和利用外商投资，是推进高水平对外开放、构建开放型经济新体制的重要内容。为进一步优化外商投资环境，提高投资促进工作水平，加大吸引外商投资力度，现提出如下意见。
一、总体要求
以习近平新时代中国特色社会主义思想为指导，全面贯彻落实党的二十大精神，坚持稳中求进工作总基调，完整、准确、全面贯彻新发展理念，构建新发展格局，推动高质量发展，更好统筹国内国际两个大局，营造市场化、法治化、国际化一流营商环境，充分发挥我国超大规模市场优势，更大力度、更加有效吸引和利用外商投资，为推进高水平对外开放、全面建设社会主义现代化国家作出贡献。
二、提高利用外资质量
（一）加大重点领域引进外资力度。支持外商投资在华设立研发中心，与国内企业联合开展技术研发和产业化应用，鼓励外商投资企业及其设立的研发中心承担重大科研攻关项目。在符合有关法律法规的前提下，加快生物医药领域外商投资项目落地投产，鼓励外商投资企业依法在境内开展境外已上市细胞和基因治疗药品临床试验，优化已上市境外生产药品转移至境内生产的药品上市注册申请的申报程序。支持先进制造、现代服务、数字经济等领域外商投资企业与各类职业院校（含技工院校）、职业培训机构开展职业教育和培训。
（二）发挥服务业扩大开放综合试点示范引领带动作用。对接国际高标准经贸规则，加大服务业扩大开放综合试点示范先行先试力度。鼓励开展知识产权、股权及相关实体资产组合式质押融资，支持规范探索知识产权证券化。有序增加股权投资和创业投资份额转让试点地区。稳妥增加国内互联网虚拟专用网业务（外资股比不超过50%）、信息服务业务（仅限应用商店，不含网络出版服务）、互联网接入服务业务（仅限为用户提供互联网接入服务）等增值电信业务开放试点地区。
（三）拓宽吸引外资渠道。鼓励符合条件的外国投资者设立投资性公司、地区总部，相关投资性公司投资设立的企业，可按国家有关规定享受外商投资企业待遇。深入实施合格境外有限合伙人（QFLP）境内投资试点，建立健全QFLP外汇管理便利化制度，支持以所募的境外人民币直接开展境内相关投资。
（四）支持外商投资企业梯度转移。依托自由贸易试验区、国家级新区、国家级开发区等各类开放平台，鼓励东部地区与中西部和东北地区、沿边地区探索通过产值、利益等分享机制，结对开展产业转移协作。对在中国境内进行整体性梯度转移的外商投资企业，按照原所在地区已取得的海关信用等级实施监督。
（五）完善外资项目建设推进机制。健全重大和重点外资项目工作专班机制，加强要素支撑、政策支持和服务保障，推动外资项目早签约、早落地、早开工、早投产。出台促进绿色电力消费政策措施，支持外商投资企业更多参与绿证交易和跨省跨区绿色电力交易。
三、保障外商投资企业国民待遇
（六）保障外商投资企业依法参与政府采购活动。尽快出台相关政策措施，进一步明确“中国境内生产”的具体标准。研究创新合作采购方式，通过首购订购等措施，支持外商投资企业在我国创新研发全球领先产品。推动加快修订政府采购法。开展保障经营主体公平参与政府采购活动专项检查，依法查处对外商投资企业实行差别待遇等违法违规行为，适时通报典型案例。外商投资企业如认为政府采购活动使其权益受到损害，可依规提起质疑和投诉，各级财政部门应依法受理并公平处理。
（七）支持外商投资企业依法平等参与标准制定工作。推进标准制定、修订全过程信息公开，保障外商投资企业与内资企业依法平等参加标准化技术委员会及标准制定工作。鼓励外商投资企业自行制定或与其他企业联合制定企业标准，开展标准化服务。在服务业扩大开放综合试点示范地区推进国家级服务业标准化试点。
（八）确保外商投资企业平等享受支持政策。各地出台的支持产业发展、扩大内需等政策，除法律法规有明确规定或涉及国家安全领域外，不得通过限定品牌或以外资品牌为由排斥或歧视外商投资企业及其产品和服务，不得对外商投资企业及其产品和服务享受政策设置额外条件。
四、持续加强外商投资保护
（九）健全外商投资权益保护机制。完善国际投资争端应对工作机制，压实主体责任，强化争端预防，妥善处理国际投资争端。坚决打击通过网络发布、传播虚假不实和侵权信息等侵害外商投资合法权益的恶意炒作行为，依法严肃查处相关责任机构和责任人。建立健全省级外商投资企业投诉协调工作机制，推动解决涉及多部门事项或政策性、制度性问题。
（十）强化知识产权行政保护。完善专利侵权纠纷行政裁决制度，加大行政裁决执行力度。支持各地区依托展会知识产权工作站，受理参展产品版权、专利、商标等知识产权申请，提供有效预防侵权措施。加强药品和医用耗材采购领域知识产权保护，企业参加采购活动须自主承诺不存在违反专利法等法律法规的情形。对涉及知识产权纠纷的产品，有关部门要加强沟通会商，依法依规开展采购活动；对经知识产权部门行政裁决或人民法院生效判决认定为专利侵权的产品，及时采取不予采购、取消中选资格等措施。
（十一）加大知识产权行政执法力度。坚决打击侵犯外商投资企业知识产权行为，针对跨区域、链条化侵权违法行为开展专项执法行动。健全知识产权快速协同保护机制，对事实清楚、证据确凿的案件依法加快办理进度，建立完善线上线下一体化执法机制，适当简化程序性要求。
（十二）规范涉外经贸政策法规制定。制定各类涉外经贸政策措施应注重增强透明度和可预期性，依法听取外商投资企业意见，新出台政策措施应合理设置过渡期。
五、提高投资运营便利化水平
（十三）优化外商投资企业外籍员工停居留政策。持续优化入出境政策措施，为外商投资企业的外籍高管、技术人员本人及家属提供入出境、停居留便利。指导我驻重点引资国家或地区使领馆继续为跨国公司高管申请签证提供便利，通过驻外经商机构及时宣介我入境政策。为符合条件的外商投资企业聘雇并推荐的外籍高级管理、技术人才申请永久居留提供便利。提高外国人永久居留身份证在公共交通、金融服务、医疗保障、互联网支付等场景应用便利度。
（十四）探索便利化的数据跨境流动安全管理机制。落实网络安全法、数据安全法、个人信息保护法等要求，为符合条件的外商投资企业建立绿色通道，高效开展重要数据和个人信息出境安全评估，促进数据安全有序自由流动。支持北京、天津、上海、粤港澳大湾区等地在实施数据出境安全评估、个人信息保护认证、个人信息出境标准合同备案等制度过程中，试点探索形成可自由流动的一般数据清单，建设服务平台，提供数据跨境流动合规服务。
（十五）统筹优化涉外商投资企业执法检查。统筹推进“双随机、一公开”监管与信用风险分类管理，对信用风险低的外商投资企业进一步降低抽查比例和频次。支持有条件的地区统筹安全生产、环境保护、产品质量等涉企执法检查事项，实现“进一次门、查多项事”。
（十六）完善外商投资企业服务保障。建立健全外商投资企业圆桌会议制度。各级重大和重点外资项目工作专班建立健全联动协调机制，及时协调解决项目签约、建设、投产中遇到的困难和问题。做好自由贸易协定原产地证书签证工作，为外商投资企业享受关税减免政策提供便利。
六、加大财税支持力度
（十七）强化外商投资促进资金保障。通过中央外经贸发展专项资金统筹加大对外资标志性项目的支持力度，促进项目尽快落地实施。完善地方各级政府外商投资促进资金使用，加大重点产业链引资服务力度。支持各地区在法定权限范围内对重点跨国公司的投资项目给予支持。
（十八）鼓励外商投资企业境内再投资。落实外国投资者境内取得利润再投资暂不征收预提所得税政策，加大宣传辅导力度，指导地方各级商务、税务等部门细化政策适用范围、申报材料、办理程序，做好具体实施工作。
（十九）落实外商投资企业相关税收优惠政策。辅导帮助外籍个人按照国家有关规定享受住房补贴、语言训练费、子女教育费等津补贴免税优惠政策。指导帮助外资研发中心按照国家有关规定享受支持科技创新进口税收政策和采购国产设备增值税退税政策。
（二十）支持外商投资企业投资国家鼓励发展领域。支持各地区在法定权限范围内，对符合鼓励外商投资产业目录规定的外商投资企业实施配套奖励措施。做好鼓励类外商投资项目进口设备免税工作有关配套政策措施落实。
七、完善外商投资促进方式
（二十一）健全引资工作机制。开展“投资中国年”系列活动，持续打造“投资中国”品牌，建立健全工作机制，指导服务地方开展外商投资促进工作。鼓励有条件的地区与相关国家或地区建立投资促进合作机制，采取多种形式构建投资促进平台。鼓励各地区探索对外商投资促进部门和团队的非公务员、非事业编制岗位实行更加有效灵活的用人机制和薪酬制度，通过跨地区跨层级跨部门调剂等方式，加强外商投资促进人员配备，加快建立多元化外商投资促进工作体系，推动形成政府、引资机构、商协会、中介机构、产业链龙头企业等多方参与、灵活高效的外商投资促进协调联动机制。
（二十二）便利境外投资促进工作。支持各地区投资促进团组常态化赴境外开展招商引资、参会参展等活动，邀请外商来华投资洽谈。对重大和重点外资项目，按工作需要为项目相关外方人员签发多次往返商务签证。
（二十三）拓展外商投资促进渠道。加强我使领馆与驻在国家或地区重点企业的联系，宣介中国投资机遇。支持各地区加强与商务部、中国贸促会驻外经贸和投资促进机构的沟通，更好发挥本地区设立在境外的投资促进机构（代表处）作用，强化与境外经贸和投资促进机构的联系合作。
（二十四）优化外商投资促进评价。建立健全外商投资促进成效评价体系，注重引资对经济社会发展的实际贡献，防止简单以引资规模和实际到资金额统计数据作为考核和相关企业、人员奖惩的依据，切实防止外商投资促进“注水”造假和恶性竞争行为。
八、加强组织实施
各地区、各部门和有关单位要坚决落实党中央、国务院决策部署，提高政治站位，切实做好进一步优化外商投资环境、加大吸引外商投资力度工作，全力实现利用外资促稳提质目标。鼓励各地区因地制宜出台配套举措，增强政策协同效应。商务部要会同有关部门和单位加强指导协调，做好政策宣介，及时落实政策措施，为外国投资者营造更加优化的投资环境，有效提振外商投资信心。
国务院
2023年7月25日
（本文有删减）