China will take further steps to improve its business environment and attract more foreign investment, according to a circular released on Aug 13 by the State Council, China's cabinet.

To improve investment quality, the nation will draw more foreign investment in key sectors and support foreign enterprises to establish research centers in China, cooperate with domestic enterprises in technology exploration and application and undertake major research projects.

The service sector will see more opening-up as pilot regions will introduce a package of measures to comport with international trade rules, and encourage combined financing and securitization of intellectual property rights.

China will also encourage eligible foreign investors to establish companies and regional headquarters to expand channels for foreign capital.

Foreign enterprises will be supported in gradient industrial transfers from China's eastern regions to central, western, and northeastern areas based on pilot free trade zones, State-level new areas and national development zones.

To guarantee national treatment for foreign enterprises, the nation will ensure their legal participation in government procurement, equal role in standards formation and fair treatment in supportive policies.

In addition, more work will be done to enhance the protection of foreign businesses' rights, strengthen law enforcement and standardize policy and regulation formation in foreign trade and investment.

In terms of investment facilitation, China will optimize its residence policies for employees of foreign enterprises and explore a safe management framework for cross-border data flows with less frequent inspection of those with low credit risks.

Fiscal and tax support is also on the way, as the nation will strengthen its guarantee of promotion capital for foreign investment and encourage foreign enterprises to re-invest in China, especially in designated sectors.