Foreign Investment, Consumption & Green Policies

Action Plan for Further Attracting Foreign Investment

The State Council released a new 24-point policy to further attract foreign investment, aimed at boosting foreign investors' confidence in China. The document details plans to expand market access, particularly in banking, insurance, and the stock market, and strengthen policy support for foreign investment via an expansion of the Encouraged Catalogue for Foreign Investment. The document reiterates optimizing the fair competition environment and cleaning up unequal treatment. For cross-border data transfer, it now mentions the white list approach, which was introduced in the Free Trade Zones. In an attempt to better align with international trade and investment rules, intellectual property protection and accession into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and Digital Economy Partnership Agreement (DEPA) are highlighted.

Our take:

This is another high-level document to attract foreign investment. This action plan can be seen as an update to the 24-point policy from last August, including the moves from recent months and a few more detailed measures. Compared to the 24-point policy, it is framed more as a call for action.

Action Plan for High-Level Opening up and Greater Efforts to Attract Foreign Investment

Action Plan to Promote Large-Scale Replacement of Equipment and Consumer Goods

The State Council issued an Action Plan to promote large-scale replacement of equipment and consumer goods, aiming to boost both investment and consumption. The main points include: Increasing policy support, promoting high-end, intelligent, and green development, and setting new, high-level standards to guide companies to meet the new requirements. The measures will be applied to equipment in key industries, construction and infrastructure, transportation, old agricultural machinery, education, culture, tourism, and medical care, as well as consumer goods such as automobiles and home appliances.

Our take:

Promoting large-scale equipment replacement is China's main method of boosting consumption this year. German companies can look out for potential subsidies for machinery renewals and opportunities in public procurement. 

Action Plan to Promote Large-Scale Replacement of Equipment and Consumer Goods

Opinions on Accelerating the Green Development of the Manufacturing Industry

The Ministry of Industry and Information Technology (MIIT) issued the Opinions on Accelerating the Green Development of the Manufacturing Industry. The document sets a target for green factory output to exceed 40% of total manufacturing output by 2030. It proposes a series of measures, including upgrading traditional industries, encouraging emerging industries to start with high-level green development, creating new modes of sustainable manufacturing, and improving the basic capability of green development.

Our take:

Upgrades in the manufacturing industry will not only benefit China’s green development, but also contribute to the high-level development goal.

Opinions on Accelerating the Green Development of the Manufacturing Industry

Guide to Payment Services for Foreigners in China

The People's Bank of China (PBoC) issued a Guide to Payment Services for Foreigners in China to provide guidance on the payment options open for foreigners in China. The document includes detailed illustrations of access and application of different payment methods, including bank cards, Alipay, WeChat Pay, Union Pay, bank account, and cash. The guide also introduced a series of facilitation measures for foreigners, such as optimized processes for Alipay, binding foreign bank cards, and simplified identity verification.

Our take:

This practical guide follows previous actions for payment services and might beuseful for short-term business travel to China.  

PBoC Guide to Payment Services for Foreigners in China

Visa Free Policy for 6 More Countries

China expanded the scope of its visa-free policy to six more countries, including Switzerland, Ireland, Hungary, Austria, Belgium, and Luxembourg. Citizens from those countries may enter China visa-free for a period of no more than 15 days for the purpose of business, travel, and visiting relatives and friends. The policy will be effective until November 30, 2024.

Our take:

Another small step to ramp up the economy. 

Announcement of Visa-free Policy for 6 more Countries  

Shanghai Implementation Plan for Promoting Service Consumption

Shanghai issued an implementation plan for promoting the quality and capacity of service consumption. The document details key tasks in tourism, sports, health services, elderly care services, information services, financial services, education services, catering, household services, residential services, and transportation, with measures such as financial support, optimization of the consumption environment, and international promotion. It proposed a target for service consumption to account for more than 50% of total social retail sales in 2027 and more than 60% of total social retail sales in 2035.

Our take:

Service consumption is seen as a driver for boosting consumption in Shanghai this year. 

Implementation Plan for Promoting the Quality and Capacity of Service Consumption

Shanghai Plan for Promoting Foreign R&D Centers

Shanghai issued a plan to promote foreign R&D centers. The major measures include: Opening city-level technology programs, research infrastructure, and technology R&D platforms to foreign-funded R&D centers, optimizing customs clearance, facilitating the cross-border data flow, optimizing financial support access, enhancing the level of IP protection, and strengthening the implementation of the current preferential policies for foreign R&D centers.

Our take:

This regional-level document is a detailed implementation plan for Shanghai, following the previous national policy on encouraging foreign investment in setting up R&D centers. Responding to the urgency of the matter, it is more detailed than last year’s version.

Plan for Promoting Shanghai Foreign R&D Centers

©2024 German Chamber of Commerce in China (GCC) / German Industry and Commerce (Taicang) Co., Ltd. (GIC) and its branches / three Delegations of German Industry and Commerce (Delegation). No part of this event and/or content and/or publication and/or video may be reproduced without prior permission. For further questions, please refer to the provided contact persons.

While every reasonable effort is made to ensure that the information provided is accurate, no guarantees for the currency or accuracy of information are made. All material relating to information, products, and services (or to third party information, products and services), is provided 'as is', without any representation or endorsement made and without warranty of any kind, including the implied warranties of satisfactory quality, fitness for a particular purpose, non-infringement, compatibility, security and accuracy. The speakers and/or contributors are solely responsible for the content thereof. Views expressed do not necessarily represent those of the German Chamber of Commerce in China and/or the Delegation of German Industry and Commerce in Beijing and/or the Delegation of German Industry and Commerce in Shanghai and/or the Delegation of German Industry and Commerce in Guangzhou and/or the German Industry and Commerce (Taicang) Co., Ltd. and its branches in China, and these entities will not be liable for any loss or damage whatsoever arising from infringement or any defect of rights of the content of the event and/or content.

This information includes links to other websites. These links are provided for your convenience to provide further information. They do not signify that we endorse the website(s). We have no responsibility for the content of the linked website(s). In case of event registration, your personal data will be collected, processed, and used solely in compliance with the applicable data protection regulations.