Fujian recently issued the Notice on Further Utilizing Foreign Investment to Achieve Steady and High-Quality Development, covering areas like the use of foreign investment to enhance performance, the promotion of investment, the improvement of the business environment, and the introduction of positive incentives. Pro-business measures included in this Notice are: the consistency of incentives for former recipients of foreign investment, increased investment in manufacturing, and more support for projects invested by global 500 companies, and top 100 businesses headquartered in Taiwan.

The size of paid-in foreign investment will be expanded. Fujian provincial government will provide a reward of up to RMB 10 million, or 1% of the paid-in investment, for the projects which should meet two criteria: a. New or expanded foreign investment projects (excluding real estate and finance) with paid-in capital of US$5 million and above, or US$3 million and above for those located in Sanming, Nanping, Longyan, and Ningde; and b. between July 1, 2021, and June 30, 2022. The reward can be increased to RMB 15 million for recipients of the global 500, and Taiwan’s top 100 companies.

More investments will be encouraged to go to manufacturing. The provincial government will offer a reward of up to RMB 10 million, or 1.5% of paid-in capital to new or expanded manufacturing projects receiving foreign investment. The paid-in investment should be worth US$10 million and above. Newly launched this year, this policy aims to encourage the flow of foreign investment to the manufacturing sector which will help Fujian strengthen weak links in the industrial and supply chains, develop their competitive advantage and extend them, so as to boost the real economy.

Utilized foreign investment is expected to be more productive. The provincial government will provide a reward of up to RMB 10 million for companies according to the following two standards: a. engaged in the high-tech industry, or providing services by harnessing the power of technological advances; and b. receiving adequate investments. Fujian will accelerate the identification of foreign investment projects which are encouraged by the government, and provide tax incentives for foreign-funded enterprises that are entitled to such treatment by law.

Services will be offered to suit the convenience of foreign investors. Policies facilitating RMB cross-border transactions will be implemented. Relevant procedures will be streamlined. Constraints on some capital projects generating RMB-denominated revenue will be lifted. Foreign-funded enterprises which do not engage in speculative trading are allowed to use capital funds to make equity investments in China in accordance with the law. Pilot policy 3.0 will be launched across the province except in Xiamen. This policy is to facilitate the management of Taiwan-invested projects through online transactions of capital gains.