China has promulgated the revised Catalogue for the Guidance of Foreign Investment Industries (2011 Revision). To promote the optimisation and upgrading of the industrial structure, the Catalogue encourages foreign investment in strategic emerging industries, high-technology industries and intellectual property services.
An official of the National Development and Reform Commission explained the priorities.
First, the Catalogue encourages investment in strategic emerging industries such as energy conservation, environmental protection, next-generation information technology and biotechnology. The aim is to improve China’s capacity to participate in international industrial relocation and develop new advantages in international intellectual property cooperation and competition.
Second, advanced manufacturing is another priority. Investors are encouraged to use new technologies, processes, materials and equipment to transform and upgrade manufacturing.
Third, the Catalogue actively guides foreign investment into high-technology services, including intellectual property services, to promote their development and improve the industry’s structure.
It also encourages multinational companies to increase research and development investment in China, establish R&D centres and cooperate with domestic enterprises, linking the use of foreign investment with the development of domestic innovation capacity. Highly polluting and energy-intensive foreign investment projects are restricted or prohibited to promote energy conservation and emissions reduction.
The Catalogue is an important industrial policy guiding foreign direct investment, which forms an important part of China’s open economy. Revising the Catalogue and adjusting foreign investment policies will guide investment, optimise the economic structure and accelerate changes to the model of economic development.
The revised Catalogue takes effect on January 30, 2012, replacing the 2007 Catalogue promulgated on October 31, 2007. Report dated January 17, 2012.
Source: http://news.163.com/11/1117/16/7J2UKOAA00014JB5.html