IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 30 Jul 2019 | Removal date: open ended

FDI: Entry and ownership rule

On June 30th, 2019, two Chinese ministries (Ministry of Commerce and National Development and Reform Commission) jointly released a new catalogue of 'Encouraged' areas for inward foreign investment.

Compared to previous editions of the list (the separately released national edition and central and western areas edition, both from 2017; see related measures), 121 items have been newly added, as summarised below:

  • 5G network technology core components;
  • Machinery for etching integrated circuits;
  • Chip installation machinery;
  • Cloud computing equipment;
  • Core components for industrial manufacturing robots;
  • New energy vehicles;
  • Smart vehicles;
  • Cell therapy medicine raw materials;
  • Equipment for large-scale cell culturing;
  • New materials, e.g. for aerospace, monocrystal silicon and large silicon wafers;
  • Engineering consultancy services;
  • Accounting and tax services;
  • Investigation and security services;
  • Cold supply chain logistics;
  • E-commerce and other supply logistics;
  • Artificial intelligence services;
  • Technologies relating to cleaner production, carbon capture and the circular economy.


Specifically for the western and central regions of China (which are traditionally less developed), the 2019 Encouraged List adds to the catalogue firms that contribute to the application of advanced technology to industries that are traditionally very labour-intensive (it does not specify more than this, so all manufacturing sectors are included in the taxonomy).

This new list goes into effect from July 30th, 2019.

AFFECTED COUNTRIES

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