The document encourages foreign investment in China, with a new focus on western and northeastern China and supporting key infrastructure projects. Multinational companies are encouraged to set up headquarters in China.

Preferential tax policies will be carried out, including deferred taxes levied on eligible projects that are invested in with profits obtained from foreign-invested companies. No withholding income tax will be levied for these projects. Deferred taxes can reduce tax burdens so companies can use the money elsewhere without interest payments.

Foreign talent is another key focus. More visas will be issued this year to foreign talent, and more multiple-entry visas that last five to 10 years will be issued to eligible foreigners. A standard work permit system will be introduced in 2018 to attract foreign professionals.

Laws on foreign capital will be improved to guarantee free outflow of profits made by foreign-invested companies. These companies are also encouraged to participate in merger and reorganization of domestic companies.

China is giving foreign investors more choices when they come to invest in the country, which has the strongest manufacturing sector as the world's second-largest economy, says Mei Xinyu, a researcher at the Ministry of Commerce's International Trade and Economic Cooperation Institute.

Last year, foreign direct investment in China reached 813 billion yuan ($122 billion; 103 billion euros; ￡94 billion), an increase of 4.1 percent, the Ministry of Commerce said.

huyongqi@chinadaily.com.cn