General Office of the Ministry of Commerce, Guiding Opinion on Attracting Foreign Investment Nationwide in 2008

Issued: March 6 2008

Main Contents: Article 1 of the Guiding Opinion states that in 2007, the number of foreign-invested enterprises (FIEs) newly established upon approval is 37,888. The amount of foreign funds actually utilized is US$83.5 billion, an increase of 15% compared to the preceding year.

Article 4 lists the focus points on the absorption of foreign investment in 2008. In the absorption of foreign investment, emphasis shall be placed on energy conservation and reduction in waste discharge, conservation and intensive use of land, self-initiated innovation and performance of social responsibility (Item Two). Investment in hi-tech industries such as manufacturing of equipment and new materials by foreign investors shall be encouraged. Administration of foreign investment in the steel and iron, cement, electrolytic aluminium and real property sectors shall continue to be strengthened. Transfer of industries with high energy consumption and high waste discharge to China shall be stringently restricted. Original innovation in FIEs and foreign-invested research and development organizations shall be encouraged to increase the ratio of China-owned intellectual property. Through the guidance of industrial, fiscal and tax policies, FIEs shall be encouraged to increase their investment in research and development in addition to import of advanced technology (Item Three). Multinational corporations shall be further encouraged to transfer their global outsourcing services to China. Foreign investment in production-type service industries such as commercial services and logistics, and social service industries that focus on improving the livelihood of people shall continue to be directed to (Item Four). Establishment of venture investment enterprises by foreign investors shall be encouraged. FIEs that meet the relevant requirements shall be directed to list in China. Participation in the reorganization and transformation of state-owned enterprises by foreign investors by way of mergers and acquisitions shall be encouraged (Item Six).