Companies reinvesting profits can get tax break

China continues to welcome foreign investment through a temporary exemption of the withholding tax on profits that are reinvested in the country, the Finance Ministry said in a statement released on its website on Thursday.

The move will help retain foreign investment and stabilize cross-border capital flows, analysts said.

The measure aims to encourage sustainable and long-term foreign investment in China and improve the quality of the business environment for foreign companies, the statement said.