Recently, with the approval of the Shanghai Municipal Government, 11 departments including the Municipal Development and Reform Commission and the Municipal Commission of Commerce jointly issued “Certain Measures to Encourage Foreign-Invested Enterprises to Reinvest in China in Shanghai”. On January 6, the Shanghai Development and Reform Commission interpreted this. The “20 Rules for Reinvestment” have four main characteristics: First, it clearly supports various forms of domestic reinvestment. Foreign-invested enterprises established by law in China are encouraged to use undistributed profits, or foreign investors to reinvest domestic and foreign currency profits lawfully obtained in China. Reinvestment methods include investing in newly established enterprises in the city, increasing capital of existing enterprises, or obtaining shares, shares of assets or other similar interests in domestic enterprises, as well as investment projects. The second is to focus on the effects of policy combinations. Focusing on the concerns of foreign-invested enterprises in domestic reinvestment, on the basis of implementing national policies one by one, 20 measures have been proposed in the four dimensions of promoting project implementation, facilitating investment and operation, implementing tax policies, and optimizing investment promotion in an effort to form policy synergy. The third is to focus on the government and enterprises working in the same direction. While formulating support policies for enterprises, it is proposed to establish a new model for attracting high-level investment and reform measures to promote foreign investment systems and mechanisms, such as a pilot domestic investment information report and a pilot evaluation of the effectiveness of foreign investment promotion, to help enterprises better enjoy support policies. Fourth, focus on transparent and operable policies. In order to facilitate enterprises to apply for business, we have prepared and published “Application Guidelines for Enterprise-Related Matters”, setting out the names, application routes, consulting departments and methods, etc.; in order to facilitate enterprises to search policies, a “Foreign-Invested Enterprises Domestic Reinvestment” policy column was set up on the Shanghai Foreign Investment Promotion Service Platform to focus on listing relevant policies. At the same time, the “Shanghai Compilation of Policies and Regulations Relating to Encouraging Foreign-invested Enterprises to Reinvest in the Domestic Reinvestment” e-book was also prepared.

Recently, with the approval of the Shanghai Municipal Government, 11 departments including the Municipal Development and Reform Commission and the Municipal Commission of Commerce jointly issued “Certain Measures to Encourage Foreign-Invested Enterprises to Reinvest in China in Shanghai”. On January 6, the Shanghai Development and Reform Commission interpreted this. The “20 Rules for Reinvestment” have four main characteristics: First, it clearly supports various forms of domestic reinvestment. Foreign-invested enterprises established by law in China are encouraged to use undistributed profits, or foreign investors to reinvest domestic and foreign currency profits lawfully obtained in China. Reinvestment methods include investing in newly established enterprises in the city, increasing capital of existing enterprises, or obtaining shares, shares of assets or other similar interests in domestic enterprises, as well as investment projects. The second is to focus on the effects of policy combinations. Focusing on the concerns of foreign-invested enterprises in domestic reinvestment, on the basis of implementing national policies one by one, 20 measures have been proposed in the four dimensions of promoting project implementation, facilitating investment and operation, implementing tax policies, and optimizing investment promotion in an effort to form policy synergy. The third is to focus on the government and enterprises working in the same direction. While formulating support policies for enterprises, it is proposed to establish a new model for attracting high-level investment and reform measures to promote foreign investment systems and mechanisms, such as a pilot domestic investment information report and a pilot evaluation of the effectiveness of foreign investment promotion, to help enterprises better enjoy support policies. Fourth, focus on transparent and operable policies. In order to facilitate enterprises to apply for business, we have prepared and published “Application Guidelines for Enterprise-Related Matters”, setting out the names, application routes, consulting departments and methods, etc.; in order to facilitate enterprises to search policies, a “Foreign-Invested Enterprises Domestic Reinvestment” policy column was set up on the Shanghai Foreign Investment Promotion Service Platform to focus on listing relevant policies. At the same time, the “Shanghai Compilation of Policies and Regulations Relating to Encouraging Foreign-invested Enterprises to Reinvest in the Domestic Reinvestment” e-book was also prepared.