In May 2013, the government of China announced changed incentives for foreign investors entering the country.



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PRC National Development and Reform Commission, May 9th 2013. (中华人民共和国国家发展和改革委员会_中华人民共和国商务部_令_第 1 号)

Inception date: 09 May 2013 | Removal date: open ended

FDI: Financial incentive

On 9 May 2013, the National Development and reform Commission (NDRC) and the Ministry of Commerce (MOFCOM) released the Catalogue of Priority Industries for Foreign Investment in China's Central and Western Regions ("2013 Catalogue") with the purpose of further promoting foreign investment in said areas. The 2013 Catalogue is complementary to the Foreign Investment Industrial Guidance Catalogue and extends the latter for FDI in central and western China.
The main amendments of this 2013 Catalogue are as follows:

  1. More items are included. The 2013 Catalogue includes 500 items adding 173 new ones to the list. Newly added items include manufacturing industries on processing biological and mineral resources. For instance, cultivation and deep processing of orange, ramie, bamboo, Chinese yam, lotus etc, is supported in Jiangxi; deep processing of zinc, tin, antimony, tungsten, manganese and other metals is supported in Guangxi Autonomous Region. Furthermore, auto manufacturing is now supported in China Central and Western Regions.
  2. More service items are included for the purpose of promoting the optimization of industrial processes. For instance cloud computing, networking, mobile internet and other IT development are supported in Shanxi province; cartoon production and derivatives development are promoted in Heilongjiang province; and merchandise wholesale and retail are supported in Shannxi province.
  3. The Hainan province is added to the 2013 Catalogue. Manufacturing of cruises, deep-water marine engineering equipment and development, operation and construction of ancillary facilities for ocean and non-reserved rainforest eco-tourism projects are now promoted in Hainan province.




Inception date: 09 May 2013 | Removal date: open ended

FDI: Financial incentive

In addition to the above, there was at least one clause in the announcement which discriminates against foreign-funded car manufacturing firms wishing to conduct business in the Inner Mongolia Autonomous region.

Manufacturers of automobiles and 'special purpose vehicles' were excluded from the scheme if the proportion of foreign capital exceeded 50%.