Tax system reform helps drive investment

During the 14th Five-Year Plan period (2021-25), China's tax system has opened wider to the world, actively drawing in foreign investment while helping domestic enterprises expand their global footprint, official data showed.

According to data released by the State Taxation Administration on Monday, the number of foreign-invested business entities with tax obligations in China increased by 12.7 percent from 2020 to the end of June 2025, showing growing confidence among global investors in China's business environment.

In terms of inbound investment, over 630 billion yuan ($87.8 billion) in profits from foreign-funded enterprises have benefited from tax incentives for reinvestment during the 14th Five-Year Plan period, coupled with new policy allowing foreign investors to offset their reinvestment amounts against tax liabilities, further strengthening the appeal of the China market for global investors, said Wang Daoshu, deputy commissioner of the State Taxation Administration, during a news conference on Monday.