Foreign investment-related policies
To allow a smooth resumption of production, the Ministry of Commerce also released measures to strengthen services to foreign companies. According to the notice, foreign enterprises that produce protective equipment against the epidemic will get special services in purchasing supplies. The ministry also guaranteed support for large foreign investment projects in terms of project construction and other promotional activities.
To stabilize foreign trade, the local commerce authorities will guide foreign enterprises to make full use of the export credit insurance policy. This includes increasing risk tolerance, especially of small, medium and micro foreign trade enterprises. Further, all business organizations under the China Export Credit Insurance Corporation are encouraged to reduce insurance premium rates and delay payments reasonably.
More importantly, the government ensured open access to an expanded market for foreign investors. It will also accelerate the reduction of the negative list of foreign investment in China and the Pilot Free Trade Zone. Major exhibition platforms such as the China International Fair for Investment and Trade (CIFTIT) will also be given special attention to help with investment promotion.
Revision of the catalogue of industries and reduction of the Negative list
From February 2 to April 18, 2020, MOFCOM will solicit public opinions for the revision of the catalog of industries for foreign investments. The proposed revision includes a tax exemption for the import of equipment for self-use and preferential corporate income tax rate of 15%.
Furthermore, the national government also released a circular concerning the use of “special funds” intended for foreign trade development and cooperation. It also promised to accelerate the further reduction of the Negative list for foreign investors in the country.
Other basic guarantees
Other concerned departments also released measures to help enterprises. The Ministry of Housing and Urban-Rural Development approved the extension of the qualification period for construction engineering enterprises. Enterprises with validity period from March 1 to June 30, 2020, can extend their qualification until July 31, 2020.
The Ministry of Justice will also reduce and exempt enterprises from paying for legal services such as notarization fees. Especially, the ministry vowed to provide notarization services related to the resumption of work and production. These include debt repayment, capital turnover, expansion of financing and other difficulties faced by enterprises.