Benefits that China grants to foreign investors are not given in the form of grants.
Most benefits are in the form of a tax benefit, including value added
tax, customs and income tax benefits in putting the emphasis on an
investment in a Special Economic Zone (SEZ) or in special sectors and
areas.
The benefits granted are as previously approved according to the nature of the foreign investment.

There are 5 SEZ’s in China in the south of the country, the main tax benefits are:

1. Corporate tax of 15%.
2. A benefit of “2 + 3 years” which means an
exemption from tax for the first two years and tax at the rate of 7.5%
for the next three years.
- Economic and Technological Development Zone (ETDZ)
3.When companies are operating in the
manufacturing sphere and they have been operating for over 10 years,
the benefits are similar to those in an SEZ.
- Pudong Zone (Shanghai)
In the Pudong zone there are 5 development
zones specializing in hi-tech, financial services, agriculture and
more. The benefits are similar to those granted to investors in an SEZ.
- Hi-Tech Development Zones
There are 52 zones in China that deal with
investments in the manufacture of hi-tech products. The tax benefits
are similar to those granted in an ETDZ.
- Investments in specific cities
4.In China there are 14 coastal cities and
20 cities in the Chinese interior that offer tax benefits such as
reduced corporate tax of 24% or corporate tax of 15% in the case of top
priority projects.