The Report on the Work of the Government pointed out that foreign capital should be utilized better. In recent years, China's business environment has continued to improve, and its ranking in the World Bank's business environment evaluation has also continued to rise. Many multinational companies also continuously invest in China because they feel the strong appeal of the Chinese market and business environment.

China has introduced a preferential tax measure: if the profits made by foreign-funded enterprises in China are used to increase direct investment in China again, their income tax during the investment period could be eliminated. The greater the amount of profit reinvested by foreign-funded enterprises, the greater the tax benefits they enjoy. Since 2018, foreign-invested projects outside the negative list have all enjoyed this policy, like the Continental Group from Germany. This company invested in the expansion of its production plant in Shanghai, and through this policy, and exempted 10 million yuan in income tax through this policy.

The data shows that since the implementation of the policy, the number of foreign-invested enterprises that benefit from this policy reached 1740, involving 14.3 billion yuan in taxes and promoting a reinvestment of 150.5 billion yuan.