China Unveils Measures to Further Support Foreign-funded R&D Centers

On January 18, 2023, the Chinese government released Circular of the State Council on Forwarding the Measures of the Ministry of Commerce and the Ministry of Science and Technology on Further Supporting Foreign Investors in Setting up Research and Development (“R&D”) Centers in China (“Circular”). The Circular has come into effect since January 11, 2023.

The Circular rolled out 16 measures in four aspects, which aim to support development of scientific and technological innovation, provide more convenience for R&D activities, introduce of overseas talent, and enhance protection of intellectual property rights. The Circular specifies the need to implement favorable tax policies for scientific and technological innovations, support legal cross-border circulation of R&D data in accordance with law, optimize the management of the external transfer of intellectual property rights and technology import and export, emphasize improvement of the protection system for confidential business information, enhance intellectual property enforcement level, and fully implement the punitive compensation system for intellectual property infringement.