Li Jiao
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China's Ministry of Commerce and Ministry of Science and Technology, in a display of commitment to innovation and foreign investment in Research and Development (R&D), issued the "Measures for Further Encouraging Foreign Investment in Establishing R&D Centers" (the Measures) on January 11, 2023. This move particularly bolsters R&D activity within major technological innovation hubs.
Exploring China's R&D Landscape
China's drive for innovation has spurred a surge in foreign-invested R&D centers nationwide. Hotspots such as Beijing, Shanghai, and the Greater Bay Area feature prominently in this expansion. Shanghai alone is home to 531 foreign-invested R&D centers, with a notable addition of 25 establishments in 2022. Predominant sectors include biomedicine, information technology, auto parts, and chemicals.
Shanghai promotes three types of R&D centers with supportive policies around customs, financial aid, talent acquisition, academia-industry collaborations, intellectual property protection, and tax incentives:
Key Takeaways from the New Measures
To bolster support for foreign-invested R&D centers and provide foreign investors with better access to China's development opportunities, the Measures propose 16 policies across four key areas:
In summary, the Measures signal China's intention to further integrate foreign-invested R&D centers into its innovative ecosystem. The supportive stance of local authorities combined with strategic measures promises a future of increased collaboration, innovation, and economic growth. This presents an excellent opportunity for foreign investors to partake in China's technological advancement.
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