18 March 2015
China Issues Updated Foreign Investment Catalogue
The National Development and Reform Commission has announced the latest revision of the Catalogue for the Guidance of Foreign Investment Industries. This takes effect from 10 April 2015.
The key features of the latest revision include:
1) Easing Foreign Investor Access
General manufacturing will be further liberalised with equity ratio restrictions in the steel, ethylene, paper, lifting machinery, power transmission equipment and famous liquor industries all cancelled. The trade in services will also be liberalised in an orderly manner. The Catalogue also details a series of liberalisation measures in the logistics, e-commerce, transportation, social services, finance and cultural sectors.
2) Foreign Investment Guidance
Foreign investments in the field of modern agriculture, new and high technology, advanced manufacturing, energy-saving and environmental protection, new energy and modern services are all to be encouraged. Foreign investments in the research and development sectors will also be supported. The integration of all efforts related to introducing investment, technology and intellectual achievements from overseas is also to be promoted.
3) Policy System Improvements
Management focus will be shifted from foreign investor access to market adjustment and industry regulation. The number of industries where foreign investment is restricted will be reduced from 79 to 38. Foreign investment projects underthe permitted category of the Catalogue will no longer be subject to equity ratio restrictions.
For further information in Chinese, see the NDRC website: Catalogue for the Guidance of Foreign Investment Industries (2015 Revised Edition)