Guangdong Gov’t Provides More favorable Conditions for FDI in Province

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Jun. 8 – The Guangdong provincial government issued a notice on May 25 regarding the further use of foreign investment, with the aim to boost economic development and social stability in the province.

Guofa [2010] No. 9 stipulates that the provincial government will provide a favorable investment environment for foreign enterprises, as well as broaden the channels and increase the intensity of foreign investment. Furthermore, the government will also implement various policies and measures to strengthen the province’s competitiveness in attracting foreign investment, so as to further optimize the foreign investment structure, encourage high tech innovation and industrial restructuring, and strengthen the overall planning and coordination work for foreign investment.

For total foreign investment (including capital increases) above US$10 million and below US$30 million, and under the encouraged category, foreign enterprises can directly apply for approval at the Provincial Development and Reform Commission, unless otherwise provided by the State Council.

In the mean time, the provincial government also encourages multinational companies to set up research and development centers, procurement centers, financial management centers and other functional centers in the province. For qualified R&D centers importing goods and equipments for the purpose of technology development, import VAT and consumption tax will be exempted until December 31, 2010.