The Chinese government has announced tax reforms in an effort to boost flagging foreign direct investment, in an apparent response to U.S. President Donald Trump's corporate tax cut.

Foreign firms that under certain conditions make further investments in China will not have their profits taxed, the Finance Ministry in Beijing announced on its website Thursday.

The change has been backdated to Jan. 1, 2017, so that foreign firms can already claim for the year just ending. The ministry said the move is intended to actively exploit foreign investments, promote them and improve their quality.

In order to qualify, foreign companies have to invest in a government approved list of industries which Beijing particularly wishes to develop.

Foreign investment in the first 10 months of 2017 only grew by 1.9 percent in comparison to the same period in 2016.

But in November there was a sudden 90-percent leap, which has lifted the growth figure for the first 11 months of 2017 to 9.8 percent.

Trump's tax changes, including a reduction in the corporation tax rate from 35 to 21 percent, are expected to encourage U.S. companies which currently declare profits overseas to repatriate them.

Experts think that Beijing fears Trump's moves will lead to a flight of U.S. capital from China, or a complete withdrawal of U.S. operations from the country altogether.

The most recent surveys of foreign firms in China are dominated by complaints of protectionism, lack of market access, rising costs and unfair competition.