Guangdong Unveils New Incentives to Attract Foreign Investment

Last Friday, our Executive Director Patrick Levesque and Vice chair Internal Joanna Chan attended the "Promotion on Incentive Policies for Attracting and Utilizing Foreign Direct Investment in Guangdong Province" conference. The event, organized by the Department of Commerce of Guangdong Province, provided insights into China's latest push to attract more foreign direct investment, particularly in Guangdong province.

Key Takeaways:

1. Greater Emphasis on Foreign Investment
   The Chinese government, under the leadership of President Xi Jinping, has made it a priority to attract and utilize foreign investment to a greater degree. This strategic shift was highlighted in the Third Plenary Session of the Twentieth Central Committee of the CPC, which called for "deepening the reform of the management system for foreign investment and outbound investment."

2. Guangdong's Foreign Investment Incentive Policies
   Guangdong province is rolling out a new round of foreign investment incentive policies, with a focus on two main areas:

a. Foreign-Invested Enterprise Investment Incentives
Eligible foreign-invested enterprises registered in key cities like Guangzhou, Shenzhen, and Zhuhai can receive investment rewards if their annual new actual foreign capital reaches $50 million or more. For enterprises registered in other Guangdong cities, the threshold is $10 million or more.

b. Foreign Multinational Company Headquarters Rewards
The new policies also include incentives to attract foreign multinational companies to establish their regional headquarters in Guangdong.

3. Promoting High-Level Opening Up and Modernization
   These foreign investment incentive measures are part of Guangdong's broader strategy to promote high-level opening up and support the province's high-quality development and modernization. The local government aims to leverage the advantages of Guangdong's ultra-large market to enhance the capacity for opening up and build a new system of open economy.

Guangdong's latest foreign investment incentive policies demonstrate China's continued commitment to opening up its economy and attracting more global capital and expertise. As one of the country's most dynamic and innovative regions, Guangdong is well-positioned to benefit from these efforts.

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