Chongqing Released Measures to Further Encourage Foreign-funded R&D Centres

Recently, in line with the deployment requirements of the Circular of the State Council on Further Encouraging Foreign Investment in Establishing Research and Development Centers (State Council Letter [2023] No. 7), efforts have been intensified to expand openness and encourage foreign investment to establish research and development centres in Chongqing. This initiative aims to promote technological innovation activities, assist in establishing Chongqing as a high-quality hub for foreign investment, accelerate the construction of a modern manufacturing cluster system, and drive high-quality development. In accordance with the laws and regulations such as the Foreign Investment Law of the People's Republic of China and its Implementation Regulations, and considering the innovation needs of Chongqing's enterprises, the Chongqing Municipal Government has formulated the "Measures for Further Encouraging Foreign Investment in Establishing Research and Development Centers in Chongqing".

The measures include a total of 21 measures, which are divided into six categories: cultivating and strengthening foreign R&D centres, encouraging basic research, supporting scientific and technological R&D innovation, improving R&D convenience, improving the protection of R&D innovation elements, and enhancing the level of intellectual property protection.

The scope of the application stipulated in the measures is:

(1) A foreign-funded R&D centre can be a foreign-funded company established by foreign investors (including foreign-funded investment companies) in accordance with the law, or it can be an independent department or branch established within the foreign-funded company;

(2) An R&D centre is an institution engaged in the research and experimental development of natural sciences and related technological fields (including intermediate experiments serving R&D activities). The R&D content can include basic research, product application research, high-tech research, and social welfare research;

(3) Having clear R&D areas, specific R&D projects, fixed locations, necessary instruments and equipment for scientific research, and other necessary research conditions;

(4) The cumulative total R&D investment shall be no less than 2 million USD.

Foreign R&D centres invested in from Hong Kong, Macao, and Taiwan shall be treated the same. If it meets multiple support policies, it will enjoy the most favourable policies and will not duplicate other support policies. The tax and fee preferential policies mentioned in the regulations shall be implemented within the time limit specified by the state.