Draft foreign investment catalogue requires consistency and clarity

With the release of draft foreign investment guidelines, overseas investors will be able to access a wider range of industry sectors. However, inconsistencies in interpretation and enforcement require an understanding of local practices and rules, say counsel.

Furthering China's commitment to foreign direct investment, a draft of the Foreign Investment Industrial Guidance Catalogue (外商投资产业指导目录) (Catalogue) was issued in early April and is expected to be passed in the summer. It expands industry sectors that are available to foreign investors, including high-tech, clean energy, aerospace and aviation, new materials, high-end manufacturing and advanced logistics.

The draft regulation is a follow-up of the State Council 's Several Opinions on Further Improving the Work on the Use of Foreign Investment ((国务院关于进一步做好利用外资工作的若干意见) (Several Opinions) that was announced last April. It revises the 2007 version of the Catalogue, which highlighted the high-tech, renewable energy and service sectors, and steered investment into the western and central regions.