Suzhou encourages foreign enterprises to reinvestment

A bird's-eye view of Suzhou in East China's Jiangsu province. [Photo/thepaper.cn]

Suzhou in East China's Jiangsu province recently launched a three-year action plan to encourage foreign enterprises to reinvest their profits into new projects, local media outlets reported.

According to the plan, Suzhou will roll out a package of preferential policies concerning financial support, talent cultivation, tax-related services, and honorary titles.

The city expects that in three years, local foreign enterprises will reinvest over 25 percent of their profits. The number of such key foreign enterprises is expected to surpass 40, accounting for over a quarter of the provincial total.

The plan also states that individual projects that follow the local industrial development trajectory will be awarded a bonus of up to 10 million yuan ($1.38 billion). Senior managers at these enterprises will also have the opportunity to be included in Suzhou's talent plans.

Foreign enterprises are also encouraged to reinvest their profits in establishing transnational headquarters and organizations such as research institutes.

Tu Lifeng, an expert on foreign investment, spoke highly of Suzhou's move for striving to meet the diverse investment needs of foreign enterprises, such as tapping new markets, technological innovation, and strategic development.

"Optimizing the utilization efficiency of innovative-driven foreign investment will boost Suzhou's industrial innovation, transformation, and upgrading," Tu said.

Suzhou has been improving its environment for foreign investment in recent years. Statistics show that the profits of local foreign enterprises reached a combined 100 billion yuan in 2017 and they have realized a combined profit of over 500 billion yuan in recent years while maintaining steady growth.