On July 21, 2020, the local government of Guangdong province announced “Notice on measures to implement foreign capital investment” in order to respond the requirements of “the Opinions on further improving work for the utilization of foreign capital” released by the State Council, and to promote the quality improvement and production increase by using foreign capital. In the notice, 12 measures in 4 areas have been come up with, and policies supporting the use of foreign capital has been strengthened. Some parts of the contents are as below.
Policy for foreign investment for new energy vehicles
Among the notice, the most notable points are to recommend the foreign investment for new energy vehicles and to relax restrictions on the ratio of foreign holdings in commercial vehicle manufacturing. At the same time, foreign capital in joint venture companies will also be supported for the transfer of average fuel consumption and new energy vehicle credits.
In addition, the incentive up to 100 million yuan at a ratio of 2 percent and more are provided for new projects introducing foreign investment at more than 50 million dollars or for capital increase project worth more than 30 million dollars.
Policy for the expansion of multinational companies
If a local management company of multinational company contributes to the province finances with 100 million yuan and more, they can get 30% of the contribution amount in current year back as incentive (the maximum amount is 100 million yuan).
Implementing laws and regulations
Laws, regulations and standards that differ from the Foreign Commercial Investment Act should be arranged. Local government is required to make the formulation of regulatory documents on foreign investment more transparent.
Fair government procurement system
According to the notice, foreign enterprises’ fair participations are ensured in formulating the national standards, industry standards, local standards and group standards. Their equal participations in government procurement are also ensured. Foreign enterprises are encouraged to establish corporate standards.
Strengthening protection of intellectual property
The notice mentions that it will enhance the punishment for infringements on intellectual property related to foreign countries, establish a framework for multiple solutions to intellectual property disputes, and protect the intellectual property of foreign investors and foreign investment firms. The measures will be also taken to promote the use of special labels for protected geographical indication products by foreign investment companies that meet the requirements, and to allow foreign investors to transfer the fee for their intellectual property rights which are acquired in China in RMB or foreign currency under the law.
The original Chinese text of the “Notice” is available on the Guangdong People’s Government website below.