New policies attract FDI to Shenzhen

In a bid to further solidify its position as China's economic powerhouse, Shenzhen, the tech-hub in the southern province of Guangdong, unveiled a series of enticing incentives aimed at attracting foreign investment and encouraging local enterprises to expand their international footprint on Wednesday.

The new policy package, detailed in a recent municipal government document jointly released by the city's commerce bureau and investment promotion bureau, offers a range of financial rewards, tax breaks and support programs designed to lure multinational corporations and foster a more outward-oriented business environment.

At the heart of the initiative lies a concerted effort to incentivize foreign investment. Foreign-invested enterprises that inject significant capital into the city will be handsomely rewarded. Those with annual "newly added actual foreign investment" exceeding $50 million in 2023 and 2024 can expect incentives ranging from 1 percent to 3 percent of the investment amount, depending on the industry sector with an upper limit of 50 million yuan ($6.9 million). "Newly added actual foreign investment" refers to the net increase in foreign capital that has been put to practical use within a particular area during a defined period.