On 28 December 2020, the National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOC) jointly published the 2020 version of China’s national industry catalogue that encourages foreign investment. The catalogue consists of 1235 articles – with 127 new articles and 88 modifications compared with the 2019 catalogue.
There are three main takeaways from the 2020 version of the catalogue: (i) increased role of foreign investment in the supply chain; (ii) encouraged foreign investment in production services; (iii) encouraged investment in Central and Western China. The 2020 version of the catalogue started to be formally implemented on 27 January 2021.
A draft version of the 2020 catalogue had previously been open for public comments – specifically from 31 July to 30 August 2020. The final version of the catalogue incorporates numerous comments submitted by foreign-invested enterprises, foreign chambers of commerce, industry associations, as well as relevant departments and local areas.
The Catalogue of Industries for Encouraged Foreign Investment (2020 Edition) is an important foreign investment promotion policy in China. Foreign investment projects under the catalogue may enjoy preferential treatment, such as reduced taxation and easier land use – in accordance with laws, administrative regulations and the provisions of the State Council.
The full Chinese text of the catalogue can be downloaded here.
