China issues updated foreign investment Catalogue effective April 10

HONG KONG – China’s National Development and Reform Commission has annouced revision of its Catalogue for the Guidance of Foreign Investment Industries, to take effect from April 10. The revisions affect a wide range of industries.

Key features 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 cancelled. The trade in services will also be liberalised. 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.

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, and foreign investment projects under the permitted category of the Catalogue will no longer be subject to equity ratio restrictions. www.hktdc-research@hktdc.com  (ATI).