1. What is Catalogue for the Encouragement of Foreign Investment Industries for (‘Catalogue’)?
The Catalogue is issued by China’s Ministry of Commerce and National Development and Reform Commission. As we all know, in China not all of the industries are open to the foreign investment. In another word, foreign investment is forbade to entry some of the industries like education and some of the industries are only open to the foreign investment under some particular situations like internet. And also there are some industries that are totally open to the foreign investment like consulting.
The Catalogue is the nation’s principle document for regulating foreign investment in China and is very important to a foreign company or individual that is seeking business opportunities in China.
2. What changes the 2011 Revision has made to the Catalogue (2007 Revision)?
On December 24, 2011, China’s Ministry of Commerce and National Development and Reform Commission released a new Catalogue. This revision removes a number of investment barriers previously applicable to foreign investors and promotes investment in emerging industries.
Major additions to the Catalogue’s list of areas ‘encouraged’ for foreign investment include:
• Certain waste management services such as technology for offshore oil spills and wastewater treatment;
• Manufacture of batteries and key components for new energy vehicles;
• Motor vehicle charging stations;
• Development and manufacturing of next generation internet system equipment;
• Venture capital business; and
• Intellectual property rights services.