The State Council issued a circular on Jan 18, requesting departments concerned and regional authorities to further support foreign investors in setting up research and development (R&D) centers in China.

The circular said scientific and technological innovations call for improved services, highlighting favorable tax policies, improved verification procedures, simplified declaration materials, and more convenience for qualified foreign R&D centers.

Basic research should be encouraged, with more support for R&D centers in legally using large scientific research instruments, scientific and technological reports, and related data of major national science and technology programs. For new-type foreign-invested institutions providing services for key technologies, local authorities should assist with infrastructure construction, equipment acquisition, talent support services, and operation funds.

The circular also stresses joint innovation by foreign-funded R&D centers and local academic institutions, including universities, scientific research institutes, and vocational schools.

Foreign-funded R&D centers will also gain support in establishing open innovation platforms, financing, and participation in national scientific and technological missions and programs.

To help R&D operations, work will be done to support legal cross-border circulation of R&D data, optimize the management of intellectual property rights for external transfer and technology imports and exports, and improve the clearance and regulation process of scientific research materials.

The introduction of overseas talent is indispensable as well, the circular said.

To that end, departments concerned and all provincial-level authorities should make it more convenient for overseas talent to work in China, allowing the R&D centers to apply for one-time work permits within the term of labor contracts and work-related residence permits for no more than five years for both foreign and domestic team members.

And, authorities concerned should encourage overseas talent to declare professional titles, strengthen related incentive and financial support, and facilitate the collection and payment of cross-border funds.

In addition, the circular also stresses better intellectual property protection. Departments concerned should accelerate improvement of the protection system for confidential business information, strengthen construction of intellectual property protection centers, and enhance law enforcement.

The Ministry of Commerce and the Ministry of Science and Technology, together with all relevant departments and units, should strengthen coordination, formulate supporting policies in a timely manner, and ensure effective implementation, the circular stressed.