Supporting foreign investment to broadly participate in "Made in China 2025"
On the 29th, Sun Jiwen, spokesperson for the Ministry of Commerce, stated that the recently released "Foreign Investment Industry Guidance Catalog (2017 Revision)" represents another significant reform initiative by China to proactively open its doors to the world and further improve the country's investment environment. The new catalog will better enable foreign-invested enterprises to play a vital role in boosting the real economy.
The "Guidance Catalogue of Industries for Foreign Investment (2017 Revision)" expands the scope of policies encouraging foreign investment—
Supporting foreign investment to broadly participate in "Made in China 2025"
On the 29th, Sun Jiwen, spokesperson for China's Ministry of Commerce, stated that the recently released "Foreign Investment Industry Guidance Catalog (2017 Revision)" represents another significant reform as China proactively opens its doors to the world and further improves its investment environment. The new catalog will better enable foreign-invested enterprises to play a vital role in boosting the real economy.
According to reports, the 2017 edition of the "Catalogue" highlights three key features: First, it further narrows the scope of approval required for establishing and modifying foreign-invested enterprises. Specifically, aside from cases involving "domestic companies, enterprises, or individuals acquiring domestic companies with which they have affiliated relationships through their legally established or controlled overseas entities," all other foreign investment mergers and acquisitions that do not involve special entry management measures—such as listed companies bringing in strategic foreign investor investments—will now be subject to filing-based management instead. Meanwhile, the Ministry of Commerce will simultaneously introduce complementary measures, including timely revisions and the issuance of the "Administrative Measures for Filing of Establishment and Changes in Foreign-Invested Enterprises," which will clearly outline the filing procedures for merger-and-acquisition-driven enterprise establishment and modifications. This move is expected to significantly streamline the procedures for foreign-invested M&A deals, effectively reducing institutional transaction costs.
Second, restrictions on foreign investment access in the service sector, manufacturing, and mining industries have been further eased, leaving only 63 restrictive measures—30 fewer than the 93 restrictive measures outlined in the 2015 version of the "Catalog."
Third, the scope of encouraged policies has been further expanded. The new "Catalogue" includes 348 entries categorized as "encouraged," an increase of 6 compared to the 2015 version, along with 35 revisions. Notably, it now covers emerging areas such as the research and development and manufacturing of virtual reality (VR) and augmented reality (AR) devices, as well as the R&D and production of key components for 3D printing equipment, and projects related to urban parking infrastructure development. These newly added and revised encouraged entries will better facilitate the integration of capital, technology, and talent, continuing to attract foreign investment into sectors aligned with China's industrial transformation and upgrading. Additionally, they will support broader foreign participation in initiatives like the "Made in China 2025" strategy and the innovation-driven development agenda. (Reporter: Feng Qiyu)
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