ANNOUNCEMENT 16 Aug 2017
August 16th, 2017 - China's top-level State Council added to the slew of recent announcements asking for foreign capital investments. The announcement No.39/2017 calls for reduction and/or removal of withholding tax for eligible foreign entities, more autonomy for regional investment zones and various measures to streamline the investment and dividend withdrawal procedure for foreign nationals.
NUMBER OF INTERVENTIONS
State Council of the PRC, August 16th 2017. (国发〔2017〕39号——国务院关于促进外资增长若干措施的通知)
In August 2017, the State Council of China built on other announcements from this year to call for yet more opening up to foreign investment.
This announcement focuses on the reduction of barriers to entry for foreign investors, as well as the decentralisation of foreign-invested business. The announcement calls for the 'perfection of the investment sphere in national development zones', which basically entails giving designated provincial investment zones more authority in how they liaise with foreign investors.
The announcement also calls for increased ease of the 'entry and exit of overseas talent' - i.e. a reduction in the difficulties foreign experts face when offering their services in the PRC.
In addition to the above, the announcement advocates a more lenient tax policy for foreign-invested entreprises, specifically a reduction or removal of witholding tax for designated businesses.