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Foreign Investment Encouraged in China 2017

Updated:2017-6-19 10:52:38    Source:www.tannet-group.comViews:834

In order to create a fairer competitive environment and activate foreign investment, foster innovation, and develop the skills of labor force, China has issued several measures on expanding open-door policy and making active use of foreign investment in 2017.

Foreign investors are encouraged to establish research and development centers in China and partner with Chinese companies as well as technology and innovation institutions. To this end, the government has offered favorable visa policies for skilled foreign nationals and their family members; in particular, those that work in the science and technology fields.

In line with the aim to transfer investments to the CNW Regions, the NDRC and MOFCOM published the 2017 revised Catalogue of Priority Industries for Foreign Investments in the Central and Western Region (“2017 CWR Catalogue”) which has come into effect and replaced the 2013 catalogue on 20 March 2017.

The 2017 CWR Catalogue covers the CNW Region and Hainan province and sets out 639 prioritized industrial items, among which, 173 are newly-added (including engineering reconnaissance and design, graphic design, and logistics).

The State Council on June 16, 2017 released a new foreign investment negative list for free trade zones in an effort to further ease investment access.

The new management measures on foreign investment access will take effect on July 10, replacing the old one issued in April 2015.

The negative list covers 15 sectors, such as mining, leasing and commercial services, manufacturing, wholesale and retail, and financing. Among the sectors, 40 categories and 95 special management measures are included.

Compared to the 2015 list, it cuts 10 categories and 27 measures concerning such fields as aviation manufacturing, waterway transportation, banking services and education.

The negative list provides an outline of the sectors in which foreign investment is restrained and is applicable to China’s free trade zones.

According to the State Council’s circular, fields not covered by the negative list, including national security, public order, public culture, financing regulation and government purchases, should follow existing regulations.

For the non-prohibited investment sectors on the list, a foreign investment permit is necessary, said the circular.

For all industries not listed in the document, foreign investors will receive equal treatment as domestic companies in China’s free trade zones.

Investors from Hong Kong, Macao and Taiwan should also abide by the special measures and restrictions set out by the free trade zone negative list, added the circular.

Local governments are encouraged to formulate their own policies to stimulate foreign investment; and foreign investors are encouraged to transfer investments to China's central, northeastern, and western regions by granting preferential tax, land, and financing treatment; confirms continuation of preferential land-use policies for “encouraged” foreign investments and the improvement of foreign currency exchange policies; and necessitates the improvement and simplification of foreign direct investment policies. 

Through the directional measures newly issued, it is clear that it is more convenient for foreign investors to invest in China in the future.

For more information about foreign investment in China, you are welcome to call Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, 18970952901 or email to

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