Foreign reinvestment in China benefiting from a preferential policy to temporarily exempt certain profits obtained by overseas investors from withholding income tax have seen rapid growth in 2024, data from the State Taxation Administration revealed on Thursday.

The total value of reinvestment reached 162.28 billion yuan (about 22.63 billion U.S. dollars) in 2024, a 15 percent increase from the previous year, hitting a record high.

China has previously deferred withholding income tax on profits that were distributed to overseas investors by resident enterprises in the country and directly reinvested in domestic projects and sectors.