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Beijing launches new policies to encourage foreign firms

Published: 29 May 2009 00:19:32 PST

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May. 29, 2009 (China Knowledge) - The Beijing government on Tuesday announced new policies meant to encourage multinational companies to establish their regional headquarters in the capital.

The new document detailing the favorable policies replaces a 1999 version. Rules regarding the implementation of the new policies are expected to be released in June.

The requirements for foreign firms that want to set up headquarters in Beijing have been eased. The registered capital required of foreign firms has been reduced to US$10 million from the US$30 million required in 1999.

Under the new policies, multinational companies will be allowed to expand their scope of business, increase imports and exports, and expand domestic distribution, logistics and service outsourcing in China.

The new regulations also establish subsidies for rent, housing purchases, and construction. Companies that generate annual sales revenue of more than RMB 100 million at their headquarters earn a one-time bonus.

The new policies will enhance the functions of the regional headquarters, and promote the development of finance, insurance, trade, accounting and the legal system in Beijing, said Chen Guangming, committee member of the Beijing Municipal Commission of Development and Reform.

Currently, Beijing has 121 foreign-invested companies with their headquarters in the capital. Most of them are among the world's top 500 companies and belong to the electronics, telecom and machinery sectors.

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