China Expands Encouraged Catalogue
The National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOFCOM) have jointly released the Catalog of Industries for Encouraged Foreign Investment (2022 Edition) (the "Catalog"), with effect from January 1, 2023.
The Catalog consists of 1474 items in total, adding 239 and revising 167 items compared with the 2022 edition. Among them, the national catalog comprises 519 items, with 39 and 85 items being added and revised compared with the previous edition; the catalog for central and western regions comprises 955 items, with 200 and 82 items being added or revised. It mainly involves the following revisions: (1) Continuously encouraging foreign investment to be made in the manufacturing sector. The national catalog continues to make manufacturing sector a key destination for foreign investment as it raises the level of supply and industrial chains and adds or expands relevant items, such as components, parts, and equipment manufacturing. (2) Continuously encouraging foreign investment to be made in producer services. Revisions are made to the national catalog with a focus on promoting the integrated development of the service and manufacturing sectors. Such items as professional design, technical service and development are added or expanded. (3) Continuously optimizing the regional layout for the use of foreign investment. The catalog for central and western regions are expanded according to the comparative advantages of various localities, such as their labor force and featured resources.