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