National Development and Reform Commission and Ministry of Commerce, Catalogue of Encouraged Foreign Investment in Industry (2019 Edition)

国家发展和改革委员会、商务部鼓励外商投资产业目录 (2019年版)

July 17, 2019 | BY

Susan Mok

The new catalogue supports foreign investment in high-end manufacturing

Promulgated: 2019-06-20 Effective: 2019-07-30
|

Promulgated: June 30, 2019

Effective: July 30, 2019

Main contents: The Catalogue combines the Encouraged Catalogue of the Foreign Investment Industrial Guidance Catalogue (Amended in 2017) and the Catalogue for Foreign Investment in the Dominant Industries of the Central and Western Regions (Amended in 2017) and revises them.

First, the Catalogue largely increases the number of sectors in which foreign investment is encouraged. It comprises a total of 1,108 items, consisting of 415 items on the national list, of which 67 are new as compared to the 2017 edition and 45 are amended; and 693 items on the Central and Western China list, of which 54 are new as compared to the 2017 edition and 165 are amended.

Second, it encourages the involvement of foreign investment in the high quality development of manufacturing. It continues to set manufacturing as a key direction for foreign investment encouragement, with at least 80% of the new or revised items of the national list of the Catalogue belonging to the manufacturing sector, supporting more foreign investment in high-end manufacturing, intelligent manufacturing, green manufacturing, etc. In the electronic information industry, the Catalogue adds items on 5G core components, etching machines for integrated circuits, chip packaging equipment, cloud computing equipment, etc. In the equipment manufacturing industry, the Catalogue adds or amends items on industrial robots, alternative energy vehicles, key parts and components for smart cars, etc. In the modern pharmaceuticals industry, the Catalogue adds items on key raw materials for cell therapy medicines, large-scale cell culture products, etc. In the new materials industry, the Catalogue adds or amends items on new aviation/aerospace materials, monocrystalline silicon, large silicon wafers, etc.

Third, it encourages foreign investment in the producer service industry. The nation list continues to increase support for the opening up and development of the producer service industry and promote the transformation and upgrading of the service industry. In the business service sector, the Catalogue adds or amends items on project consulting, accounting, tax, inspection, testing and certification services, etc. In the commercial circulation sector, the Catalogue adds or amends items on cold-chain logistics, e-commerce, special railway lines, etc. In the technical service sector, the Catalogue adds items on artificial intelligence, clean production, carbon capture, circular economy, etc.

Fourth, it supports the undertaking of foreign-invested industrial transfer by Central and Western China. The Central and Western China list further adds items on labor intensive and advanced appropriate technology industries and ancillary facilities, and increases support for the undertaking of foreign-invested industrial transfer by Central and Western China. For provinces that have particular agricultural resources and labor advantages, such as Yunnan, Inner Mongolia and Hunan, the Catalogue adds or amends items on agricultural product processing, textiles and garments, furniture manufacturing, etc. For provinces where electronics industry concentration is rapidly developing, such as Anhui, Sichuan and Shaanxi, the Catalogue adds items on general integrated circuits, tablet computers, communication terminals, etc. In provinces with concentrated transport and logistics networks, such as Henan and Hunan, the Catalogue adds logistics warehousing facilities, LNG vehicle refueling stations, etc.

clp reference: 2300/ 19.06.30 promulgated:2019-06-20 effective:2019-07-30

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