Published: May 18, 2020
Category: Corporate/Business Matter
By: David Cui
China has extended a number of tax and preferential policies announced last year to the end of 2020. For example, from May 1, 2020 to December 31, 2020, small low profit enterprises (enterprises that meet the conditions specified in Guo Shui Fa [2019] No. 2) can postpone the payment of enterprise income tax to the first declaration period in 2021 after making advance declaration.
Similarly, China has requested banks to allow corporate borrowers to extend their repayment terms. In addition, China's central and local governments have been launching a series of supporting policies to boost enterprise confidence and reduce some of the compliance burden of enterprises. Since February, policies have been put in place to enable enterprises to resume production and receive tax breaks, financial support, lower social security compliance requirements, lower energy costs, and incentives for the medical supply chain. In addition, a number of policies to promote foreign trade have been introduced.
Enterprises in China, including foreign-invested enterprises, can use these special policies to overcome the short-term challenges brought by the economic impact of the epidemic. In the long run, as China seeks more foreign investment to promote economic growth, create employment opportunities and develop upstream of the value-added enterprise chain, all of these promote the faster opening of many industries.
At the two sessions held in late May last year, China announced that it would no longer regard GDP growth as an economic goal this year (for the first time since 1990), but implement measures to support employment. (the two sessions are the most important annual political conferences in China, marking major policy objectives and government intentions in the coming years.)
Employment growth will need to accelerate the opening up of key industries or relax regulatory requirements that indirectly impede foreign investors from entering the market.
Reliable investment destination
The coronavirus pandemic (covid-19) has shaken every field of the global economy without exception. However, China is more successful than other countries because they have adopted a clear strategy, mobilized key resources in a timely manner, and gained extensive community participation and support. China experienced the most serious crisis at the beginning of this year and is at the forefront of recovery. The key lessons learned in the process of controlling the epidemic have been quickly translated into important decisions aimed at strengthening the public health system, corporate finance, stabilizing the market and restoring the supply chain, all of which have contributed to China's faster than expected economic recovery.
Incentives
The Chinese government has also accelerated the planned market opening of various industries in order to facilitate more foreign investment. Since the 1970s, China has established a number of economic development zones, which provide preferential business policies, which are different from the national overall management policies. Since then, China has developed a variety of economic development zones to attract foreign direct investment (FDI). Among other incentives, enterprises operating in the Economic and Technological Development Zone can expect higher levels of operational autonomy, various tax exemptions, land and construction subsidies, and preferential employment and procurement policies. Foreign entities investing in China should deepen their understanding and comparison of the incentive measures of many economic development zones in China.
Future prospects
There is an obvious trend in China's economic recovery, that is, accelerating the application of technology in various sectors of industry and service industry. In view of China's efforts to invest in high-tech innovation in recent years, the outbreak of coronavirus only advanced the application schedule, because it was imminent, leading to the almost immediate and extensive promotion and use of technical solutions.
Whether it's a software based application used to track health and fitness parameters, telemedicine, contactless devices, digital communication systems, e-commerce or telework management platform. The outbreak of coronavirus has permanently affected the way companies do business in and with China.
疫情后的中国投资环境有何变化
中国已将去年公布的多项税收和优惠政策延长至2020年底。例如，从2020年5月1日到2020年12月31日，小型微利企业（指符合国税发〔2019〕2号公告规定条件的企业）在进行预缴申报后，可推迟缴纳企业所得税至2021年第一申报期。
同样，中国也要求银行允许延长企业借款人的还款期限。此外，中国中央和地方政府一直在推出一系列配套政策，以提振企业信心，减轻企业的一些合规负担。自2月份以来，已经出台了政策，使企业能够恢复生产，并获得减免税费、财政支持、降低社会保障合规要求、降低能源成本以及针对医疗供应链的激励措施。此外，还出台了多项促进对外贸易的政策。
在华企业，包括外商投资企业，可以利用这些特殊政策，克服疫情带来的经济影响带来的短期挑战。从长期来看，随着中国寻求更多的外国投资以促进经济增长、创造就业机会和向增值企业链上游发展，这些都促进多个行业的更快开放。
在去年5月下旬举行的两会上，中国宣布今年不再将GDP增长目标作为经济目标（自1990年以来首次），而是实施支持就业的措施。（两会是中国最重要的年度政治会议，标志着未来几年主要政策目标和政府意图。）
就业增长将需要加快关键行业的开放，或放宽间接阻碍外国投资者进入市场的监管要求。
可靠的投资目的地
冠状病毒大流行（COVID-19）无一例外地震动了全球经济的各个领域。然而，中国比其他国家更为成功，因为它们采取了明确的战略，及时调动了关键资源，并获得了广泛的社区参与和支持。中国在今年年初经历了最严重的危机，处于复苏的最前沿。在控制疫情过程中吸取的关键经验教训已迅速转化为重要的决策，其目标是加强公共卫生系统、企业财务状况、稳定市场和恢复供应链，所有这些都累积起来有助于中国经济复苏速度超过预期。
激励措施
中国政府还加快了各行业计划中的市场开放，以期为更多外国投资者提供便利。中国自20世纪70年代以来建立了多个经济开发区，这些地区提供优惠的商业政策，不同于国家整体管理的政策。从那时起，中国发展了多种多样的经济开发区，以吸引外国直接投资（FDI）。除其他激励措施外，在经济技术开发区运营的企业可以期望获得更高级别的经营自主权、各种免税、土地和建筑补贴以及优惠的就业和采购政策。在中国投资的外国实体应加强了解并比较中国许多经济开发区的激励措施。
未来展望
中国经济复苏有一个明显的趋势，那就是在工业和服务业的各个部门加速应用技术。鉴于中国近年来致力于投资高科技创新，冠状病毒的爆发只是提前了应用时间表，因为迫在眉睫导致了技术解决方案几乎立即和广泛的推广和使用。
无论是基于软件的应用程序，用于跟踪身体健康和健身参数、远程医疗、非接触式设备、数字通信系统、电子商务还是远程工作管理平台。冠状病毒的爆发已经永久性地影响了企业在中国以及与中国开展业务的方式。
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