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China Releases Policy Encouraging Foreign Investors to Set Up R&D Centers

Mon, 13 Mar 2023
Categories: China Legal Trends

On 11 Jan. 2023, China’s Ministry of Commerce (MOFCOM) and Ministry of Science and Technology (MOST) issued “Several Measures for Further Encouraging Foreign Investment in Establishing Research and Development (R&D) Centers” (关于进一步鼓励外商投资设立研发中心的若干措施, hereinafter the “Measures”).

The following points are noteworthy in the Measures.

  • The process of setting up foreign-funded R&D centers will be simplified and optimized.
  • Chinese financial institutions are encouraged to provide financial support to foreign-funded R&D centers.
  • Foreign-funded R&D centers are encouraged and supported to undertake research projects of the Chinese government.
  • Foreign-funded R&D centers can apply for work-based residence permits as research groups. Besides, measures will be taken to facilitate overseas talents to stay in China long-term or permanently.

According to the MOFCOM, from 2012 to 2021, the number of invention patents filed by foreign-funded industrial enterprises in China, with a prime operating revenue of more than 20 million yuan, increased from 68 thousand to 241 thousand, an increase of 255.2%.

Since it is believed that foreign-funded R&D centers have made significant contributions to China’s scientific and technological innovation, the Chinese government has adopted the Measures to support their development.



Cover Photo by Zhaoyang Chai on Unsplash


Contributors: CJO Staff Contributors Team

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