Qualified Foreign-Invested Businesses in Chinese Western and Central Provinces Enjoy a Reduced CIT Rate of 15%

Effective Regions

The Catalogue of Encouraged Industries for Foreign Investments in the Western and Central Region applies to enterprises in

(select the following provinces to view the exact policy):

• Anhui Province
• Chongqing City
• Sichuan Province
• Shanxi Province
• Shaanxi Province
• Gansu Province
• Guangxi Zhuang Autonomous Region
• Guizhou Province
• Yunnan Province
• Tibet Autonomous Region
• Liaoning Province
• Qinghai Province
• Ningxia Hui Autonomous Region
• Xinjiang Uygur Autonomous Region (includes Xinjiang Production and Construction Corps)
• Inner Mongolia
• Hubei Province
• Hunan Province
• Hainan Province
• Henan Province
• Heilongjiang Province
• Jiangxi Province
• Jilin Province

The overall area accounts for more than 70% of China’s land area. At the same time, Yanbian city in Jilin Province, Enshi city in Hubei Province, Xiangxi city in Hunan Province, and Ganzhou city in Jiangxi Province are also implemented with the regulation in accordance with the western region.

Encouraged Industries in Western China

Newly-Added Industries

In general, a total of 535 new encouraged industries was listed in the catalog and they could be grouped into six categories: agriculture industry, energy industry, technology industry, manufacturing industry, healthcare industry, and financial industry. The example for each category is listed as follows:

1. Examples of agriculture industry: Psammophyte planting and processing for Qinghai Province.
2. Example of the energy industry: Solar power generation system construction and operation for Ningxia Hui Autonomous Region.
3. Example of the technology industry: 5G Mobile Internet, Internet of Things, Industrial Internet, Big Data, Cloud Computing, Artificial intelligence, blockchain construction, and operation; network technology; Internet production services, production Platform construction and operation of live service, technological innovation, public service, etc. For Xinjiang Uygur Autonomous Region.
4. Example of manufacturing industry: Automobile manufacturing, special purpose vehicles (excluding ordinary trailers, dump trucks, vans) Type cars and warehouse-type cars) manufacturing for Inner Mongolia.
5. Example of the healthcare industry: Tibetan medicine and Yi medicine research and development, production, and sales for Sichuan Province.
6. Example of the financial industry: Micro-loan financial services to serve “agriculture, rural areas and farmers”, small and micro enterprises, and individual industrial and commercial households in Sichuan Province.

Foreign Investors and Wholly Foreign-Owned Enterprises (WFOEs)

Foreign investors and wholly foreign-owned enterprises (WFOEs) are encouraged to invest in specific industries, fields, and regions according to the Catalogue of Industries for Encouraging Foreign Investment (2020 edition). The catalog merged and expanded the original Foreign Investment Industry Guidance Catalogue and Foreign Investment advantage industry catalog in the Central and Western Regions, and it is one of the main references for foreign investors and WFOEs to qualify for the benefits. The newly released Catalogue of Encouraged Industries in Western Region(2020 edition) is applicable to all kinds of enterprises that produce and operate in the Western Region, and foreign-invested enterprises must follow the Catalogue of Industries for Encouraging Foreign Investment (2020 edition). Foreign investors and WFOEs can qualify for the benefits in accordance with laws, administrative regulations, or the provisions of the State Council, benefits for foreign investors are listed as follows:

1. Foreign investors could benefit from the tariff exemption policy for imported self-use equipment within the amount of total investment.
2. WFOEs in encouraged industries in the western region could benefit from the 15% corporate tax reduction.

For foreign-invested projects, priority could be given to land supply. In determining the land price for transfer, the price can be implemented at no less than 70% of the national minimum price for industrial land transfer.