00:00In other news, China is stepping up efforts to attract foreign investors by unveiling new tax breaks this week.
00:07It is part of a broader effort to restore confidence and signal openness as trade talks continue with the European Union and the US.
00:16In a joint statement, the Finance Ministry, Commerce Ministry and State Taxation Administration announced new incentives.
00:23Foreign firms that reinvest profits earned in China into local operations will be eligible for a tax deduction equivalent to 10% of the reinvested amount.
00:34Any unused tax credits can also be carried forward through the end of 2028.
00:39Qualifying investments made retroactively from January 1, 2025 may also be applied for.
00:45Foreign investments remains crucial to China, supporting jobs, technology transfer and management expertise.
00:52While China is still the world's second largest recipient of foreign investment, inflows have declined amid rising competition with the United States.
01:01Government data showed that foreign investment fell 13.2% year-on-year between January and May, totaling about 358.2 billion yuan.
Comments