Shenzhen unveils new incentives to attract foreign capital

Shenzhen has unveiled two new incentives to support multinational companies to establish high-end headquarters and foreign-invested R&D centers.

These incentives are part of updated measures designed to further attract and utilize foreign investment, which will take effect Jan. 1, 2026. The policy, which will remain effective for three years, comprises 22 measures across five key areas. 

Under the new incentives, for regional headquarters of multinational companies — including China headquarters, Asia-Pacific headquarters, or global business division headquarters — recognized by Guangdong Province between 2025 and 2027, a one-time reward of up to 8 million yuan (US$1.1 million) will be granted if the newly added actual foreign capital in the previous year reaches US$10 million or more.

Foreign-invested R&D centers recognized by Shenzhen’s foreign investment and technology authorities between 2025 and 2027 will qualify for a one-time reward of up to 1 million yuan each. If the center serves as a global R&D hub of a multinational corporation and its newly added actual foreign capital in the prior year exceeds US$10 million, an additional reward of up to 5 million yuan will be provided, bringing the total potential support to 6 million yuan. District-level governments may also introduce complementary policies.

The document encourages foreign investment in Shenzhen’s advanced manufacturing, high-end equipment, next-generation information technology, and new materials. It also supports globally renowned manufacturers in setting up headquarters and R&D, design, and production operations in Shenzhen.

To create a better foreign business environment, the policy ensures foreign-invested enterprises’ participation in government procurement and standard-setting, improves mechanisms for handling complaints filed by foreign investors, strengthens intellectual property protection, and reduces inspection hurdles related to foreign-invested companies.