Linklaters Insights: China proposes to reform its catalogue of industries guiding foreign investment
20 November 2014
China's National Development and Reform Commission has published a draft of the new Foreign Investment Industrial Guidance Catalogue, which is intended to replace the 2011 version of the Catalogue, for public consultation until 3 December 2014.
The Catalogue's classification of all industries into one of four categories ('encouraged', 'permitted', 'restricted' and 'prohibited'), together with co-existing rules which set category-specific levels of governmental approval and other filing formalities for foreign investments, and provide a variety of incentives in areas such as taxes, environmental and land policy for industries in the 'encouraged' category, make the Catalogue a key policy tool for the Chinese Government to influence the direction of foreign investment and identify sectors for eliminating caps on foreign investment.
The full article is available on the Linklaters website.