IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 20 Mar 2017 | Removal date: open ended
Still in force

FDI: Financial incentive

On the 20th of March 2017, the Chinese General Administration of Customs announced its first official implementation following Premier Li Keqiang's 'executive meeting' (see source 5) with the State Council in December of 2016, outwardly urging for more policies that favour foreign investment within China.

The removes all taxes and tariffs on imports pertaining to foreign investment entreprises listed in an announcement from the National Develpoment and Reform Council and Ministry of Commerce (2017 revision). The affected industries differ from province to province, focusing on areas that are already points of economic strength for each region. Broadly speaking, the following sectors are prioritised for investment:

  • Agriculture technology and derived products
  • Mining
  • Infrastructure
  • Tourism
  • Traditional medicine

This brings current policy back into line with a 1997 State Council edict, which was the first to implement these tax and tariff exemptions for foreign investors. The 1997 policy was changed in 2008, exempting relevant firms only from import tariffs. VAT and other import taxes still applied, until now.

 

AFFECTED COUNTRIES

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