夜雨聆风Circular of the General Office of the State Council Transmitting the Measures by the Ministry of Commerce and the Ministry of Science and Technology on Further Encouraging Foreign-Invested Enterprises to Establish R&D Centers
State Council Circular [2023] No. 7
To all people’s governments of provinces, autonomous regions, and municipalities directly under the Central Government; all ministries and commissions under the State Council; and all institutions directly affiliated with the State Council:
The “Measures on Further Encouraging Foreign-Invested Enterprises to Establish R&D Centers,” jointly submitted by the Ministry of Commerce and the Ministry of Science and Technology, has been approved by the State Council. It is hereby transmitted for your conscientious implementation.
General Office of the State Council
January 11, 2023
(This document is publicly released)
Measures on Further Encouraging Foreign-Invested Enterprises to Establish R&D Centers
Ministry of Commerce & Ministry of Science and Technology
Foreign-invested R&D centers constitute an integral part of China’s scientific and technological innovation system. To accelerate the implementation of the innovation-driven development strategy, expand international scientific and technological exchanges and cooperation, enhance support for foreign-invested enterprises conducting R&D and innovation activities in China, and better leverage their positive role in serving the creation of a new development paradigm and promoting high-quality development, the following measures are formulated:
I. Supporting Scientific and Technological Innovation
(1) Optimizing Innovation Support Services
Implement tax policies supporting scientific and technological innovation. Encourage local governments to optimize verification procedures, simplify application documentation, and provide greater convenience for eligible foreign-invested R&D centers. Strengthen guidance and services for foreign-invested R&D centers applying for recognition as high-tech enterprises. Organize policy training sessions and enhance policy communication and outreach to encourage and guide more foreign investment into scientific and technological innovation fields. (Responsible entities: Ministry of Science and Technology, Ministry of Finance, Ministry of Commerce, State Taxation Administration, General Administration of Customs, and provincial-level people’s governments according to respective responsibilities)
(2) Encouraging Basic Research
Support foreign-invested R&D centers in legally accessing large-scale scientific research instruments, scientific and technological reports from national major science and technology programs, and related data. Local governments may provide support—in areas such as foundational infrastructure construction, equipment procurement, talent-related services, and operational funding—for newly established foreign-invested R&D institutions that provide key generic technology R&D services for their regions. (Responsible entities: Ministry of Science and Technology, Ministry of Commerce, General Administration of Customs, and provincial-level people’s governments according to respective responsibilities)
(3) Promoting Industry-Academia-Research Collaborative Innovation
Encourage collaboration between foreign-invested R&D centers and regular institutions of higher education, research institutes, and vocational schools on joint technological breakthroughs, while protecting the intellectual property rights (IPR) of both parties. Encourage foreign-invested R&D centers to cooperate with vocational schools in technical collaboration, establish practical training bases, and co-build joint laboratories and other technology-skill innovation platforms. Support foreign-invested R&D centers’ participation in local platforms for technology transfer and innovation entrepreneurship. Support eligible foreign-invested R&D centers in establishing postdoctoral research workstations, which, upon approval, may independently recruit postdoctoral researchers. (Responsible entities: Ministry of Education, Ministry of Science and Technology, Ministry of Human Resources and Social Security, and provincial-level people’s governments according to respective responsibilities)
(4) Supporting the Establishment of Open Innovation Platforms
Support foreign investment in establishing open innovation platform-type R&D centers. Strengthen guarantees regarding land, equipment, infrastructure, and other factors to further enable these platforms to integrate technological, human, financial, and industrial chain resources from domestic and foreign enterprises, universities, and research institutes through provision of facilities, R&D spaces, and professional guidance, thereby achieving collaborative innovation. Support the enterprises that have settled on the platformbusiness registration methods such as “one address, multiple licenses” or cluster registration. (Responsible entities: Provincial-level people’s governments)
(5) Enhancing Financial Support for Innovation
Encourage financial institutions, under the premise of controllable risk and commercial sustainability, to provide financial support to foreign-invested R&D centers engaged in scientific innovation and basic/frontier research. Local commerce authorities should conduct in-depth field research, proactively understand local foreign-invested R&D centers’ financing needs and operational conditions, and lawfully share relevant information with financial institutions in a timely manner to actively facilitate “bank-enterprise matchmaking.” (Responsible entities: Ministry of Commerce, People’s Bank of China, China Banking and Insurance Regulatory Commission, and provincial-level people’s governments according to respective responsibilities)
(6) Facilitating Participation in Government-Funded Projects
Encourage and support foreign-invested R&D centers in undertaking national science and technology tasks and participating in major national science and technology programs. Pilot multilingual publication of project calls, appropriately extend application deadlines, and improve application convenience. Actively include qualified scientific experts from foreign-invested R&D centers in national and local science and technology expert databases to participate in consultation, review, and management of science and technology programs. (Responsible entities: Ministry of Science and Technology and provincial-level people’s governments according to respective responsibilities)
II. Enhancing R&D Convenience
(7) Supporting Lawful Cross-Border Data Flows for R&D
In accordance with relevant laws and regulations including the Cybersecurity Law, Data Security Law, and Personal Information Protection Law, strengthen cross-border data security management to safeguard national security, public interests, and personal information rights. Efficiently conduct security assessments for outbound transfers of important data and personal information to promote secure, orderly, and free flows of R&D-related data. (Lead entity: Cyberspace Administration of China; responsible entities: Ministry of Industry and Information Technology, Ministry of Public Security, and provincial-level people’s governments according to respective responsibilities)
(8) Optimizing Management Processes for Overseas Transfer of Intellectual Property and Technology Imports/Exports
Improve institutional frameworks for overseas transfer of intellectual property. Guide local governments in aligning supporting systems, mechanisms, and optimizing procedures. Streamline technology import/export management, study facilitation arrangements for intra-group cross-border technology transfers by multinational enterprises, and enhance policy interpretation, training, and guidance. (Lead entities: Ministry of Commerce, China National Intellectual Property Administration; responsible entities: Publicity Department of the CPC Central Committee, Ministry of Agriculture and Rural Affairs, National Forestry and Grassland Administration, etc., according to respective responsibilities)
(9) Optimizing Customs Clearance and Supervision for Scientific Research Materials
For genetically modified organisms (GMOs) of animals and plants and biological materials imported by foreign-invested R&D centers for national or provincial-level research projects, actively conduct biosafety risk assessments and grant streamlined quarantine approval for those meeting requirements. Support extending the re-export period for temporarily imported R&D-specific critical equipment, test vehicles, and other items used exclusively for R&D purposes. (Responsible entities: General Administration of Customs, Ministry of Science and Technology, Ministry of Agriculture and Rural Affairs, Ministry of Commerce, etc., according to respective responsibilities)
III. Encouraging the Introduction of Overseas Talent
(10) Improving Work Convenience for Overseas Talent in China
Allow foreign-invested R&D centers to apply, on a team basis, for work permits valid up to the duration of the employment contract and work-type residence permits valid for up to five years for team members (including non-team foreign nationals), facilitating long-term or permanent residence for overseas talent in China. For high-end overseas talent hired by foreign-invested R&D centers, eligible individuals may benefit from streamlined processes such as notification-and-commitment or acceptance-with-deficiency for work permits. Optimize procedures for changing or reapplying for work permits when senior foreign executives appointed by the same multinational headquarters transfer across provinces. (Responsible entities: Ministry of Foreign Affairs, Ministry of Science and Technology, Ministry of Human Resources and Social Security, National Immigration Administration, and provincial-level people’s governments according to respective responsibilities)
(11) Encouraging Overseas Talent to Apply for Professional Technical Titles
Establish green channels for overseas high-end and urgently needed talent employed by foreign-invested R&D centers to apply for professional technical titles. Relax requirements regarding qualifications and years of experience, and allow overseas work experience and achievements to be used as evaluation criteria. Eligible individuals may directly apply for senior-level titles. (Responsible entity: Ministry of Human Resources and Social Security)
(12) Strengthening Awards and Funding for Overseas Talent
Encourage local governments, within statutory authority and based on local development needs, to provide support—including housing, children’s education, spousal employment, and medical care—for eligible high-end and urgently needed overseas talent employed by foreign-invested R&D centers. Provide funding for leading talents and their teams engaged in key R&D projects. (Responsible entities: Ministry of Education, Ministry of Science and Technology, Ministry of Human Resources and Social Security, and provincial-level people’s governments according to respective responsibilities)
(13) Facilitating Cross-Border Fund Transfers for Overseas Talent
Support financial institutions in lawfully facilitating compliant cross-border fund receipt and payment services for overseas talent working at foreign-invested R&D centers. (Responsible entities: People’s Bank of China, State Administration of Foreign Exchange, and provincial-level people’s governments according to respective responsibilities)
IV. Enhancing Intellectual Property Protection
(14) Accelerating the Improvement of Trade Secret Protection Frameworks
Further clarify the scope of trade secret protection, acts of infringement, and legal liabilities; improve litigation procedures for infringement cases; and strengthen judicial protection of trade secrets for all market entities. (Responsible entities: Supreme People’s Court, Supreme People’s Procuratorate, Ministry of Justice, Ministry of Public Security, State Administration for Market Regulation, etc., according to respective responsibilities)
(15) Strengthening Intellectual Property Protection Centers
Further enhance rapid collaborative IP protection mechanisms and optimize the layout of IP protection centers to provide one-stop integrated services—including expedited examination, confirmation, and enforcement—for enterprises, including foreign-invested R&D centers. (Responsible entity: China National Intellectual Property Administration)
(16) Enhancing IP Enforcement Capabilities
Fully implement the punitive damages system for IP infringement. Leverage the administrative adjudication system for patent disputes and strengthen enforcement of administrative rulings. Continue special rectification campaigns targeting malicious trademark registration, counterfeiting and confusion, patent infringement, online piracy, and other IP violations. (Responsible entities: Supreme People’s Court, Supreme People’s Procuratorate, Publicity Department of the CPC Central Committee, General Administration of Customs, State Administration for Market Regulation, China National Intellectual Property Administration, etc., according to respective responsibilities)
Document Index Number: 000014349/2023-00001
Subject Category: Commerce, Customs, Tourism / Others
Issuing Authority: General Office of the State Council
Date of Issuance: January 11, 2023
Title: Circular of the General Office of the State Council Transmitting the Measures by the Ministry of Commerce and the Ministry of Science and Technology on Further Encouraging Foreign-Invested Enterprises to Establish R&D Centers
Document Number: State Council Circular [2023] No. 7
Publication Date: January 18, 2023
The Ministry of Commerce and the Ministry of Science and Technology, together with relevant departments and agencies, shall strengthen organizational support, enhance coordination, conduct policy outreach, and promptly formulate supporting policies to ensure effective implementation of these measures. Local governments shall, based on local conditions, optimize management and services, ensure detailed implementation of relevant measures, and guarantee that eligible foreign-invested R&D centers lawfully enjoy all supportive policies. Significant progress, existing challenges, and successful practices shall be reported in a timely manner to the competent authorities.