National Development and Reform Commission, Foreign Investment Industrial Guidance Catalogue (Amendment Draft)

Issued: November 4 2014

Main contents: The Catalogue places emphasis on promoting the opening of the manufacturing industry and service industry to foreign investment, and encourages foreign investment in modern agriculture, high and new technology, advanced manufacturing, energy saving and environmental protection, alternate energy sources, the modern service industry, and research and development.

The newly revised Catalogue abolishes the restrictions on foreign investment in sectors such as iron and steel, ethylene, oil refining, coal chemical equipment, feeder rail lines, subways, automotive electronics, lifting machinery, equipment for electricity transmission and transformation, famous and fine white spirits, international maritime transport, finance companies, insurance brokerages, chain stores, and inspection of import and export goods. Foreign investors may establish wholly foreign-owned enterprises for large-scale papermaking. As for alternate fuel vehicles, of the three major core technologies, two, namely electric motors and electronic controls, are completely relaxed whereas batteries still have a 50% shareholding percentage restriction. In the real property development sector, business such as the development of large tracts of land, construction and operation of high-end hotels and office buildings, and real property intermediary and brokerage companies have been removed from the restricted category. The restriction preventing foreign investment from exceeding 50% in e-commerce has also been abolished.