Shanghai unveils new measures to encourage foreign enterprises' reinvestment

Shanghai has introduced 20 new measures to boost domestic reinvestment by foreign-funded enterprises, with the goal of enhancing the city's business environment and attracting more foreign capital.

The measures, jointly issued by the municipal development and reform commission, the municipal commission of commerce and nine other departments, focus on facilitating project implementation, easing investment operations, implementing tax incentives, and optimizing investment promotion services.

Major initiatives include supporting various reinvestment models, optimizing land allocation, encouraging technology upgrades, and streamlining administrative processes for the domestic transfer of medical device production.

Tax policies are a major highlight, with continued implementation of preferential measures such as tax credits and the temporary suspension of withholding tax for profit reinvestment.

Shanghai's tax authority will actively identify potential reinvestment projects and provide tailored services to help foreign companies expand operations and fully benefit from the new policies.

As a leading gateway to China's opening-up, Shanghai exemplifies the country's sustained efforts to attract and retain foreign investment.

Data from the Ministry of Commerce shows that in the first 11 months of 2025, a total of 61,207 new foreign-invested enterprises were established nationwide in China, a year-on-year increase of 16.9 percent. By industry, foreign capital inflows reached 221.26 billion yuan (about 31.5 billion U.S. dollars) in high-tech sectors, with e-commerce services, medical device and aerospace equipment manufacturing growing 127 percent, 46.5 percent and 41.9 percent year on year, respectively. ■