New Benefits Catalogue

On June 10th, the catalogue of primary industrial sectors for foreign investment in central western China approved by the country’s Ministry of Commerce and Economic Development and Reform Commission will become effective. Aimed at respecting natural and local resources, it includes 22 provinces in the northwest of the country, an area that serves as a logistical bridge to Eurasia and the southern part of the continent. To present $20 billion dollars have been invested with investments increasing by 36%. Enterprises are also able to submit requests for access to fiscal incentives like a preferential 15% tax rate for high-tech companies, or 2 years of exemptions followed by another three at 12.5%, as well as 50% right-offs for expenses in research and development. Specific subsidies will also be granted to foreign businesses investing in agriculture, forestry, fishing, animal husbandry, software, integrated circuitry, environmental projects and technology exchanges.