Core Viewpoint - The Chinese government aims to enhance the attractiveness of foreign investment by combining market opportunities, fiscal support, and quality service guarantees, with a consensus among the international community being optimistic about the Chinese market [1][4]. Group 1: Tax Policy and Foreign Investment - The Ministry of Finance, State Taxation Administration, and Ministry of Commerce have jointly issued a policy allowing foreign investors to offset 10% of their taxable income against direct investments made from distributed profits from Chinese resident enterprises between January 1, 2025, and December 31, 2028 [1]. - This tax incentive is expected to reduce the tax burden on foreign investors, encouraging long-term capital investment in China [1][2]. - In 2024, foreign reinvestment in China benefiting from deferred tax policies is projected to reach 162.28 billion, a 15% increase year-on-year [2]. Group 2: Supportive Measures for Foreign Investment - The new tax credit policy is part of a broader strategy to create a favorable business environment for foreign investment, with 32 tax policies specifically encouraging foreign investment [3]. - The Chinese government is actively participating in international tax governance and enhancing multilateral tax cooperation to foster a better international tax environment [3]. - The "2025 Action Plan for Stabilizing Foreign Investment" aims to stabilize existing investments, improve quality, optimize the environment, and enhance expectations, signaling a commitment to high-level opening-up [3]. Group 3: Challenges and Future Directions - The global investment landscape is undergoing significant changes, with foreign direct investment declining, which poses challenges for China's foreign investment utilization [4]. - Despite foreign enterprises in China having considerable profitability, profit growth has slowed in recent years, necessitating a combination of market opportunities, fiscal support, and quality services to attract foreign investment [4]. - The government plans to implement hard measures and soft services to ensure foreign capital is willing to invest, stay, and thrive in China [4]. Group 4: Service Innovations and Efficiency - Continuous improvement in digital empowerment and departmental collaboration is essential, with initiatives like integrated processing of related matters and policy services without application requirements being promoted [5]. - Tax authorities are encouraged to share data with other departments to enhance service efficiency, as seen in Jiangsu Province's initiatives to optimize tax refund processes and improve foreign enterprise satisfaction [5].