China has released a document aimed at encouraging reinvestment by foreign-funded enterprises, according to a circular jointly released by seven government bodies, including the National Development and Reform Commission (NDRC).

The 12 measures in the document focus on reducing costs, improving efficiency, broadening investment channels, and enhancing service quality for foreign-funded enterprises.

Focusing on enhancing project support services, optimizing land and resource allocation, streamlining procedures for setting up new entities through reinvestment, facilitating the use of foreign exchange funds, improving financing channels, innovating financial products and services, and implementing supportive policies, the document proposes to help foreign-funded enterprises deepen their presence and achieve long-term development in the Chinese market.

The document also specifies the applicable scenarios for this stimulus package and calls for pilot programs to improve investment reporting by foreign-funded enterprises, enhanced inter-departmental information sharing, and improved evaluation methods for promoting foreign investment.

An NDRC official emphasized that reinvestment is a vital component of foreign direct investment and reflects China's commitment to high-level opening-up.

Looking ahead, the NDRC will work with local authorities to tailor the implementation of these policies, improve the reinvestment environment, and accelerate execution. According to Jing Qin, deputy director-general of the NDRC's department of foreign investment, a dedicated task force will continue to track implementation and provide targeted services for foreign investors. Green channels will also be opened for eligible reinvestment projects.

Yuan Shenglong, director of the Comprehensive Office at the Chinese Academy of Macroeconomic Research, noted that the creation of a national reinvestment project database and the inclusion of qualifying projects in major investment lists will steer foreign capital toward capital-and technology-intensive sectors.

Experts also pointed out that measures like simplifying procedures for setting up reinvested enterprises, optimizing resource allocation, and piloting domestic investment reporting for foreign-funded enterprises reflect the latest progress in reforming China's foreign investment management system.

"The document serves as a comprehensive policy measure to implement the 2025 Government Work Report's call to 'encourage foreign investors to increase their reinvestment in China,' by lowering costs, streamlining procedures and strengthening policy guarantees," said Luo Rong, director of the Institute of International Economics at the Chinese Academy of Macroeconomic Research.