Ministry of Finance: Fully support the stability of foreign trade and foreign investment.

The Ministry of Finance released a report on the implementation of China's fiscal policies in the first half of 2025. Firstly, it effectively utilized tariff control. Starting from January 1, 2025, temporary import tax rates lower than the most favored nation rates were implemented for 935 items, enhancing the linkage effect between domestic and international markets and resources. Expanding the network of high-standard free trade zones, reducing tariffs in conjunction with 24 free trade agreements and preferential trade arrangements signed with 34 trading partners. The China-Maldives Free Trade Agreement came into effect on January 1, 2025, with tariff reductions implemented, and after the final round of reductions, close to 96% of tariff items will be duty-free. Responding promptly and forcefully to external shocks, imposing counter tariffs on the US in response to their tariffs, and safeguarding our legitimate rights and interests. Participating in Sino-US economic and trade talks, pushing for significant reductions in tariffs and extending the tariff suspension arrangement, effectively boosting confidence in the markets of both countries and globally. Secondly, strengthening the guidance of fiscal fund policies and leveraging the amplifying effect. Through the Innovation Development Fund of Trade in Services, driving social capital to support the innovation and development of trade in services and explore overseas service markets. Thoroughly implementing demonstration projects to improve the quality and efficiency of foreign trade and economic cooperation, guiding localities to focus on key outward-facing industrial chains, implementing demonstration projects, and promoting high-quality development of foreign trade and foreign investment. Thirdly, introducing tax incentives. From January 1, 2025, to December 31, 2028, foreign investors can offset 10% of their tax payable on profits distributed domestically during 2025-2028 for new effective investments made during this period. Any remaining portion that cannot be offset can be carried forward for future use.