Page 6 - THE SOUTH CHINA BUSINESS JOURNAL
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Investing in
Guangdong
Easier for
Foreign Firms after
New Incentives
Announced
On September 13, South China’s Guangdong province
announced a series of investment incentives and cost-
cutting measures to offset the impact of the worsening trade
war with the US.
The measures, outlined in the Policy Measures for
Expanding Opening-up and Using Foreign Investment,
consist of a 10-point plan to attract foreign investment
by opening market access, offering talent and land-use
incentives, supporting R&D, and strengthening intellectual
property (IP) protection.
Most notably, the plan allows foreign investors to set up
wholly foreign-owned enterprises (WFOEs) to produce
special-purpose and new energy vehicles (NEVs), drones,
aircraft, and other high-tech industries – where joint ventures
were previously required.
The plan is in response to a July 31 directive from the central
government instructing regional governments to roll out
market opening measures and policies to maintain economic
stability. Nevertheless, while the plan offers a variety of
measures to bolster the economy, they primarily target
strategic high-tech industries rather than the firms that might
be most vulnerable to the escalating US tariffs.
In this article, we discuss key aspects of Guangdong’s plan to
promote foreign investment in the province – a combination
of previously announced policies from the central government
as well as region-specific incentives.
4 AmCham South China
Investing in
Guangdong
Easier for
Foreign Firms after
New Incentives
Announced
On September 13, South China’s Guangdong province
announced a series of investment incentives and cost-
cutting measures to offset the impact of the worsening trade
war with the US.
The measures, outlined in the Policy Measures for
Expanding Opening-up and Using Foreign Investment,
consist of a 10-point plan to attract foreign investment
by opening market access, offering talent and land-use
incentives, supporting R&D, and strengthening intellectual
property (IP) protection.
Most notably, the plan allows foreign investors to set up
wholly foreign-owned enterprises (WFOEs) to produce
special-purpose and new energy vehicles (NEVs), drones,
aircraft, and other high-tech industries – where joint ventures
were previously required.
The plan is in response to a July 31 directive from the central
government instructing regional governments to roll out
market opening measures and policies to maintain economic
stability. Nevertheless, while the plan offers a variety of
measures to bolster the economy, they primarily target
strategic high-tech industries rather than the firms that might
be most vulnerable to the escalating US tariffs.
In this article, we discuss key aspects of Guangdong’s plan to
promote foreign investment in the province – a combination
of previously announced policies from the central government
as well as region-specific incentives.
4 AmCham South China
