China has rolled out a new set of targeted measures to facilitate domestic reinvestment by foreign-invested enterprises (FIEs), in a move that signals a shift from single-entry capital attraction toward a more circular and long-term foreign direct investment (FDI) model.

On July 18, 2025, the National Development and Reform Commission (NDRC) and four other ministries jointly issued a circular entitled Several Measures to Encourage Domestic Reinvestment by Foreign-Invested Enterprises(NDRC Foreign Investment Document No. 155 [2024]). The document outlines 16 measures across five key areas, spanning investment access, financing facilitation, cross-border fund use, land and energy guarantees, and information sharing mechanisms.

What sets this document apart is its operational specificity. Rather than reiterating broad principles, the circular offers detailed guidance on streamlining equity investments between FIEs, easing access to qualified investor status for cross-border investment channels, and lifting unnecessary approval thresholds. For example, FIEs are now encouraged to expand investments in their upstream and downstream domestic operations, while qualified companies can utilize funds raised via channels like Qualified Foreign Limited Partnerships (QFLP) or Qualified Domestic Limited Partnerships (QDLP) for equity investments, including convertible debt instruments.

Another key feature is its cross-border flexibility. Under the new rules, FIEs can convert and reinvest their foreign exchange capital with fewer procedural hurdles, provided the reinvestments are in line with the encouraged industry catalogue or green, high-tech sectors. Moreover, local authorities are encouraged to improve cross-border fund circulation mechanisms and offer “green channels” for reinvestment registration and tax deferral—especially for reinvestments within free trade zones and key industrial clusters.

The policy also emphasizes infrastructure-level improvements, including more flexible land-use planning for high-value foreign reinvestments and better energy quota allocation for projects aligned with industrial upgrading goals. To reduce information asymmetry, the circular calls for the creation of local-level reinvestment information platforms and policy databases tailored to multinational enterprises.

While understated in tone, the document reflects a broader recalibration in China's FDI strategy—from simply bringing in capital, to embedding foreign firms more deeply into the domestic value chain. For international investors seeking long-term certainty, the measures could serve as a framework for more agile capital redeployment, better regulatory predictability, and greater integration into China's industrial ecosystem.