The most recently updated Catalogue contains a total of 1,235 items covering a wide range of industries.
Favorable treatment available to foreign-invested enterprises (FIEs) in encouraged industries that meet the requirements includes:
Tariff exemptions on imported equipment – The import of self-use equipment within the total amount of investment can be exempted from customs duties
Lowered corporate income tax (CIT) – The CIT rate can be reduced to 15% compared to the normal 25%
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Access to preferential land prices and looser regulation of land usage – Land can be preferentially supplied for projects with intensive land use and the land transfer price can be much lower
What does this mean for foreign investors in China?
A foreign investor investing in China should check if its intended business falls within the encouraged industries.
If so, make the relevant filing before applying for the favorable treatments.
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