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COVID-19 Outbreak in China: State-Level and Local-Level Government Measures Supporting Affected Foreign Invested Enterprises

A multitude of State- and Local-level policies has been issued to emphasise the PRC government’s efforts to tackle the COVID-19 outbreak and to support Foreign Invested Enterprises (“FIEs”).

While the State-level measures are mostly of a more general nature and mostly target supply and works directly related to managing the COVID-19 outbreak (e. g. with regard to medical supplies, medical staff, etc.) and have a rather limited direct effect on FIEs, Local-level measures offer more direct and specific preferential treatments  /  subsidies FIEs may take advantage of in order to soften the impact of the COVID-19 outbreak on their business operations. This varied approach of measures can be seen as a reflection of the different levels of impact the COVID-19 outbreak has had on different regions in the PRC: while some have experienced no to very little impact, others were moderately impacted and yet others again severely affected.

It goes without saying that in the current fluid and dynamic environment surrounding the COVID-19 outbreak, additional measures and amendments to existent measures will be published on a regular basis and hence FIEs must continuously monitor the issuance of potential preferential treatments they may be entitled to.

Mostly, the preferential measures listed below address the economic impact for companies, e. g. by granting companies the right to defer tax filings and tax payments as well as social insurance payments or certain entitlements to refunds or discounts concerning certain social insurance contributions.

This Flyer lists some of the currently known preferential measures.


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Experts

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Susanne Rademacher

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Dr Jenna Wang-Metzner

Legal Consultant

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Simon Henke

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Corinna Li

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Kata Liu

Legal Consultant, LL.B. (Tianjin), LL.M. (Berlin & Beijing)