Published by ChinaMNC · Liangdang

Longnan City Signals Shift to Business-Environment and Industry-Ecosystem Investment Promotion

Foreign founders considering a presence in Longnan should note the city’s new investment promotion priorities: business environment over incentives, industry ecosystems over single projects, and full lifecycle services. A high-level meeting on 8 October outlined the direction.

Longnan’s New Investment Promotion Direction

On 8 October, Longnan City held a meeting to advance its investment promotion work. The meeting was led by Liu Yongge, Secretary of the Municipal Party Committee, who delivered a speech, and was chaired by Zhang Qiang, Deputy Secretary of the Municipal Party Committee and Mayor. Other municipal leaders attended. The meeting was held via video link to county-level offices.

For foreign founders evaluating Longnan as a location for company registration or operations, the meeting provides a signal of how the city intends to attract and serve investment. The emphasis is on shifting from traditional incentive-based approaches to a model centred on business environment, industry ecosystems, and long-term service.

Why This Matters for Foreign Founders

Investment promotion priorities often shape the practical experience of setting up and running a company. When a city moves from offering preferential policies to improving the overall business environment, foreign-invested enterprises may find that procedural transparency, regulatory predictability, and government service quality become more important than one-off incentives.

The meeting explicitly called for a transition in investment promotion work. According to the source, Liu Yongge urged a shift from “policy-preference investment promotion” to “business-environment investment promotion”; from “single-project investment promotion” to “industry-ecosystem investment promotion”; from “resource and energy investment promotion” to “scenario-application investment promotion”; from “setting up guidance funds for investment promotion” to “capital organisation investment promotion”; and from “one-time investment promotion” to “full-lifecycle service investment promotion.”

For foreign founders, these shifts suggest that Longnan aims to compete by offering a more supportive operating environment and by integrating incoming investment into existing and emerging industrial chains. The reference to full-lifecycle services implies a focus on supporting companies beyond the initial registration stage, potentially covering ongoing compliance and operational needs.

From Broad Solicitation to Targeted Recruitment

The meeting also stressed improving the effectiveness of investment promotion. Liu Yongge called for a change in recruitment methods from “extensive net-casting” to “precise drip irrigation.” This means moving away from broad, unspecific solicitation toward targeted efforts.

Specific measures mentioned include:

• Focusing on both large and small projects, and placing equal weight on external recruitment and internal cultivation.
• Leveraging available resources and strengths.
• Precisely planning projects around the upstream and downstream of advantageous industrial chains.
• Drawing investment promotion maps, clarifying recruitment directions and target enterprises, and pursuing targeted efforts accordingly.
• Actively attracting high-quality projects with strong industrial fit and driving capacity.

For foreign founders, this suggests that Longnan may prioritise projects that align with its existing industrial strengths. Before committing to a location, it is advisable to understand which industries the city is focusing on and how a foreign-invested enterprise might fit into those chains.

Accountability and Implementation

The meeting emphasised strengthening responsibility implementation, mechanism building, assessment and evaluation, and supervision to ensure results. Liu Yongge urged that efforts be sustained and followed through to produce tangible outcomes, and that recruitment results be quickly converted into development effectiveness.

Zhang Qiang, in his chairing remarks, stressed the need to base work on resource endowments and industrial foundations, to plan investment projects in depth and with precision, and to target specific enterprises for recruitment. He also called for a correct view of political performance, proactive responsibility, standardised investment promotion behaviour, and full efforts to attract projects, promote implementation, and optimise services, thereby empowering the city’s high-quality economic development.

The meeting also reported on the completion of the city’s investment promotion work from January to September. Responsible persons from Xihe County, Liangdang County, the Municipal Industry and Information Technology Bureau, the Municipal Agriculture and Rural Affairs Bureau, and the Municipal Culture, Radio, Television and Tourism Bureau delivered speeches.

Practical Implications for Foreign Founders

While the meeting did not announce specific incentives or guarantees for foreign investors, the stated direction has practical implications for those considering company registration or operations in Longnan.

First, the shift toward business-environment competition suggests that foreign founders should pay attention to the local regulatory and service environment. Understanding how government services are delivered, how policies are implemented, and how disputes are resolved may become more relevant than seeking preferential treatment.

Second, the focus on industry ecosystems and precise recruitment implies that foreign-invested enterprises with technologies or business models that complement Longnan’s industrial chains may find a more receptive audience. It is advisable to research the city’s key industries and identify where a foreign company can add value.

Third, the emphasis on full-lifecycle services indicates that support may extend beyond registration to include ongoing operational matters. Foreign founders should inquire about the specific services available at different stages of the company lifecycle.

Finally, the meeting’s call for standardised investment promotion behaviour suggests that procedures may become more transparent and predictable. This could reduce uncertainty for foreign investors, but it is still important to conduct due diligence and seek professional advice on legal, tax, and regulatory matters.

Next Steps

Foreign founders interested in Longnan should monitor further announcements from local authorities regarding implementation details, sector-specific policies, and service mechanisms. Engaging with local investment promotion agencies and professional advisors can help clarify requirements and opportunities.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.

For assistance with registering and operating a company in China, foreign founders can contact ChinaMNC on WhatsApp or WeChat at +86 153 1898 8535.