Notice on Several Measures to Encourage Reinvestment by Foreign-Invested Enterprises within ChinaIssued by the National Development and Reform Commission and Other Departments

No. 928 [2025] of the National Development and Reform Commission

To the People's Governments of All Provinces, Autonomous Regions, Municipalities Directly Under the Central Government, Cities Separately Listed in the State Plan, and the Xinjiang Production and Construction Corps:

To implement the decisions and deployments of the Central Committee of the Communist Party of China and the State Council, further attract and utilize foreign investment, and encourage reinvestment by foreign-invested enterprises within China, the following policy measures are hereby notified with the approval of the State Council.

The measures outlined in this notice apply to the following scenarios: Foreign-invested enterprises legally established within China using their retained earnings, or foreign investors using legally obtained profits in RMB or foreign exchange within China, to invest in establishing new enterprises, increase capital in existing enterprises, or acquire shares, equity, property shares, or other similar rights in enterprises within China, as well as to invest in projects within China.

Local governments shall establish a project database for reinvestment by foreign-invested enterprises within China based on actual conditions and ensure project service support. Eligible reinvestment projects by foreign-invested enterprises within China may be included in the list of major and key foreign-invested projects and enjoy corresponding support policies.

Foreign-invested enterprises conducting reinvestment within China shall be supported in flexibly adopting methods such as long-term leasing of industrial land, leasing followed by transfer, and flexible term出让 to reduce initial land use costs. Specific methods shall be implemented in accordance with existing encouraging and supporting policies.

For wholly-owned legal entities newly established within China by foreign-invested enterprises applying for industry access permits already obtained by their parent companies, the competent industry authorities may, in accordance with the law, optimize and simplify the processing procedures and shorten processing times for those meeting basic conditions.

Relevant tax support policies shall be implemented and enforced in accordance with the law to encourage foreign investors to reinvest in China and promote the formation of more effective investment.

Projects invested in by enterprises within China that are reinvested in by foreign-invested enterprises and that fall under the Encouraged Catalogue of Industries for Foreign Investment shall enjoy support policies related to imported equipment.

Where foreign-invested enterprises use legally generated foreign exchange profits or foreign investors use legally obtained foreign exchange profits within China to conduct domestic reinvestment, the relevant foreign exchange funds may be transferred domestically in accordance with regulations.

Provided that foreign investment access special administrative measures are complied with and the domestic investment projects are genuine and compliant, foreign-invested enterprises using foreign exchange capital or RMB funds obtained from foreign exchange settlement to conduct domestic reinvestment shall not require the invested enterprise or the equity transferor to undergo procedures for registering the receipt of domestic reinvestment.

For eligible foreign shareholder关联 loans and "panda bonds" required for domestic reinvestment by foreign-invested enterprises, management processes shall be optimized and included in "green channel" management.

Various financial institutions are encouraged to innovate products and services, in accordance with laws and regulations and under controllable risks, to provide financial services and support for domestic reinvestment by foreign-invested enterprises.

Pilot programs for reporting domestic investment information by foreign-invested enterprises shall be promoted, and inter-departmental information sharing on domestic reinvestment by foreign-invested enterprises shall be strengthened to facilitate enterprises' access to relevant support policies.

Evaluation methods for promoting foreign investment shall be further optimized, with emphasis on the actual contribution of domestic reinvestment by foreign-invested enterprises to economic and social development.

National Development and Reform Commission

Ministry of Finance

Ministry of Natural Resources

Ministry of Commerce

People's Bank of China

State Taxation Administration

State Administration of Foreign Exchange

July 7, 2025

Q&A with a Relevant Official from the National Development and Reform Commission on the "Notice on Several Measures to Encourage Reinvestment by Foreign-Invested Enterprises within China"

Recently, with the approval of the State Council, the National Development and Reform Commission, the Ministry of Finance, the Ministry of Natural Resources, the Ministry of Commerce, the People's Bank of China, the State Taxation Administration, and the State Administration of Foreign Exchange jointly issued the "Notice on Several Measures to Encourage Reinvestment by Foreign-Invested Enterprises within China" (hereinafter referred to as the "Notice"). To facilitate accurate understanding and implementation of the policy, a relevant official from the National Development and Reform Commission accepted an interview to answer questions.

Q: Could you introduce the background of the "Notice"?

A: On April 25, the Central Politburo meeting emphasized the need to steadfastly expand high-level opening up. The 2025 Government Work Report proposed encouraging foreign investors to expand reinvestment. Foreign investment is a key component of high-level opening up and plays an important role in developing new productive forces and achieving Chinese modernization. Reinvestment by foreign-invested enterprises within China is a significant part of foreign investment, and encouraging such reinvestment is of positive significance for attracting and utilizing foreign investment more effectively.

To implement reforms deepening the foreign investment promotion system and mechanism, the National Development and Reform Commission, together with relevant parties, launched a special action to serve foreign-invested enterprises, studying and addressing their concerns and demands during investment in China. During this action, many foreign-invested enterprises provided feedback on their domestic reinvestment activities and offered suggestions and policy demands. In response to new situations and characteristics in the management of reinvestment by foreign-invested enterprises, we drafted these encouraging measures based on expert opinions, local research, and collaboration with relevant departments. With the approval of the State Council, the National Development and Reform Commission and six other departments jointly issued the "Notice."

Q: What are the main contents of the "Notice"?

A: The "Notice" is an important document for deepening reforms in the foreign investment promotion system and mechanism and for attracting and utilizing foreign investment more effectively. It aims to help relevant parties carry out work more targetedly and promote domestic reinvestment by foreign-invested enterprises.

Strengthen project service support: Local governments are to establish a project database for domestic reinvestment by foreign-invested enterprises based on actual conditions and ensure project service support. Eligible projects may be included in the list of major and key foreign-invested projects and enjoy corresponding support policies.

Optimize land resource allocation: Foreign-invested enterprises conducting domestic reinvestment are supported in flexibly adopting methods such as long-term leasing of industrial land, leasing followed by transfer, and flexible term出让 to reduce initial land use costs. Specific methods shall be implemented in accordance with existing encouraging and supporting policies.

Optimize and simplify relevant procedures: For wholly-owned legal entities newly established within China by foreign-invested enterprises applying for industry access permits already obtained by their parent companies, the competent industry authorities may, in accordance with the law, optimize and simplify processing procedures and shorten processing times for those meeting basic conditions.

Implement and enforce support policies: Relevant tax support policies shall be implemented and enforced in accordance with the law to encourage foreign investors to reinvest in China and promote the formation of more effective investment. Projects falling under the encouraged category that are invested in by enterprises within China reinvested in by foreign-invested enterprises shall enjoy support policies related to imported equipment.

Facilitate the use of foreign exchange funds: Where foreign-invested enterprises use legally generated foreign exchange profits or foreign investors use legally obtained foreign exchange profits within China to conduct domestic reinvestment, the relevant foreign exchange funds may be transferred domestically in accordance with regulations. Provided that foreign investment access special administrative measures are complied with and the domestic investment projects are genuine and compliant, foreign-invested enterprises using foreign exchange capital or RMB funds obtained from foreign exchange settlement to conduct domestic reinvestment shall not require the invested enterprise or the equity transferor to undergo procedures for registering the receipt of domestic reinvestment.

Increase financial support and innovation: For eligible foreign shareholder关联 loans and "panda bonds" required for domestic reinvestment by foreign-invested enterprises, management processes shall be optimized and included in "green channel" management. Various financial institutions are encouraged to innovate products and services, in accordance with laws and regulations and under controllable risks, to provide financial services and support for domestic reinvestment by foreign-invested enterprises.

Additionally, the "Notice" clarifies the applicable scenarios for the encouraging measures and puts forward requirements for promoting pilot programs on domestic investment information reporting by foreign-invested enterprises, strengthening inter-departmental information sharing, and optimizing evaluation methods for promoting foreign investment.

Q: How will the National Development and Reform Commission further support global multinational companies in making long-term investments and deepening their presence in the Chinese market?

A: The issuance of the "Notice" once again demonstrates our open attitude toward welcoming multinational companies to make long-term investments and deepen their presence in the Chinese market. The National Development and Reform Commission will collaborate with relevant departments to strengthen coordination and guidance, ensuring the implementation of the "Notice."

Adhere to inter-departmental coordination and central-local linkage: Work with relevant parties to enhance policy interpretation and guidance, instructing local governments to prioritize promoting domestic reinvestment by foreign-invested enterprises in their efforts to attract and utilize foreign investment. Emphasis will be placed on the actual contribution of domestic reinvestment by foreign-invested enterprises to economic and social development, ensuring the effective implementation of encouraging measures. Strengthen central-local coordination, encouraging local governments to refine work measures based on their职责权限 and actual conditions, continuously improving reinvestment便利度, and enhancing service support for reinvestment by foreign-invested enterprises.

Track implementation progress: Continue the special action to serve foreign-invested enterprises, gathering feedback from foreign-invested enterprises on local implementation through local research, seminars, and one-on-one visits. Study and address new situations and problems arising during policy implementation, and promptly summarize good practices and experiences from all sides in promoting domestic reinvestment by foreign-invested enterprises, effectively enhancing enterprises' sense of gain and satisfaction.

Implement a policy mix: Give full play to the role of the task force for major foreign-invested projects,适时推出新一批重大外资项目, include more eligible reinvestment projects in list management and tracking services, and open green channels to accelerate project implementation. Based on the key areas of concern for foreign-invested enterprises during reinvestment,研究出台新版《鼓励外商投资产业目录》, guiding foreign investment toward advanced manufacturing, modern services, high-tech, energy conservation, environmental protection, and central-western and northeastern regions, forming a合力 for更大力度吸引和利用外资.