Shanghai Foreign-Invested Enterprise Reinvestment Measures
Published: December 26, 2025
Executive Summary
Shanghai introduced a package of measures in December 2025 to encourage foreign-invested enterprises to reinvest profits and expand operations. The measures include flexible land-use policies, streamlined foreign exchange registration, simplified food retail licensing, and expanded Qualified Foreign Limited Partnership (QFLP) pathways.
Key Points
Flexible land-use: Industrial land can be converted to mixed-use with simplified approval for foreign reinvestment projects
Streamlined forex registration: Profit reinvestment no longer requires separate SAFE pre-approval for qualifying enterprises
Simplified food retail licensing: Single-window approval for FIEs expanding into retail food and beverage operations
Expanded QFLP pathways: Higher quotas and broader investment scope for foreign limited partners
Targeted at encouraging profit retention and organic growth of existing foreign-invested enterprises in Shanghai
Complements Shanghai's existing regional headquarters incentive program, creating a full reinvestment ecosystem