Clifford Chance

An Overview of the Latest Changes to China's Industry Catalogue for Foreign Investment

6 January 2012

On 24 December 2011, China issued a revised version of the Industry Catalogue for the Guidance of Foreign Investment which will come into effect on 30 January 2012 to replace the existing version. The revised Catalogue illustrates China's latest policy of encouraging foreign investment in emerging industries such as innovative technology and new energy, while restricting foreign investment in certain overheated industries. On a more macro level, the change depicts China's shift in focus towards enhancing the "quality" of foreign investment rather than "quantity" – foreign investment is being encouraged in environmental friendly and hi-tech sectors rather than traditional manufacturing activities. This briefing explains the key changes introduced in the revised Catalogue to foreign investment in major sectors in China, including manufacturing, service, education, financial, transportation/warehousing/postal, as well as wholesale/retail/logistics.

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