Reinvestment record set by foreign biz

Taxation policy helps investors plow profits back into sectors within China

Foreign businesses, including those from the United States, reinvested a record 162.28 billion yuan ($22.3 billion) in China last year, helped by the country's deferred taxation policy, according to the latest data from the State Taxation Administration.

Under the deferred taxation policy, foreign investors are temporarily exempt from paying certain taxes on the profits they earn from Chinese businesses, as long as those profits are reinvested into projects or sectors within the country.

According to the tax authority, foreign reinvestment benefiting from the policy hit an all-time high, with the total amount soaring 15 percent year-on-year in 2024.