The Kimou (East China) Surface Treatment Circular Eco-Industrial Park in Taizhou, Jiangsu province. [Photo/Kimou Environmental]

Taizhou recorded a sharp increase in the reinvestment of profits by foreign-funded enterprises in the first half of 2026, with $104 million reinvested, up 112.3 percent year-on-year and accounting for 50 percent of the city's actual utilized foreign investment.

The reinvested funds are mainly directed toward technological upgrades, capacity expansion and green transformation in sectors such as shipbuilding, new materials and metal products.

Kimou Environmental is a case in point. The company has reinvested nearly $20 million this year to support the third phase of its East China Surface Treatment Circular Eco-Industrial Park. Once completed, the park is expected to accommodate around 200 surface-treatment companies, covering a full range of processes including gold and nickel plating. The park will have an annual processing capacity of 60 million square meters, serving high-end sectors such as aerospace and high-speed rail.

Favorable national policies have supported the surge in profit reinvestment. In June, China announced that overseas investors who use their profits for direct investment are eligible for a 10 percent tax credit based on the investment amount.

Beyond policy incentives, Taizhou's well-developed industrial ecosystem is another key factor encouraging leading companies to continue increasing their investment. Shared facilities at the surface-treatment industrial park, including centralized wastewater treatment and hazardous chemical storage, help companies reduce costs and improve efficiency.

Zhu Jie, deputy general manager of a company in the park, said shared facilities have saved the company more than 1 million yuan ($148,000) in annual operating costs, while its environmental assessment compliance rate has reached 100 percent.