Catalogue of Industries for Guiding Foreign Investment (2015 amendment) will be implemented on 10th April 2015. The update this time is mainly for the purpose to encourage the foreign investor to make the investment in the modern agriculture, high technology, advanced manufacturing industry, energy saving and environment protection, new energy and modern service industry.
As the ever biggest amendments with the widest range, 76 categories in the encouraged industry are changed for the purpose of make the improvement on foreign investors’ quality and stimulating their using the new technology, processing method, materials and equipments. 79 categories in the restricted industry are reduced to 38 categories. The category for the industries restricted by “Joint Venture or Contractual Joint Venture” is reduced from 43 to 15 and the category for “Chinese party controlling the shares” is reduced to 35.
Shanghai Dongjin is reminding you of the below points to be aware of.
- The description as “Otherwise it is stipulated in the regulations made by the state council or other industrial policies, it should meet their requirements” is deleted. It means that from now on, The restriction and prohibition of the foreign investment will be only made by the LAWS. The local or industrial regulations can no long make this function.
- Service field: legal consulting is moved from the restriction to the prohibition. The auction of antiques and the antiques store are listed on the prohibition list. It is allowed to set up the wholly foreign invested accounting firm (with a Chinese-nationality chief partner), operation of the recreation place.
- Education field: high education and pre-education are added to the restriction list. Further, it is only allowed by Contractual Joint Venture and DOMINATED BY THE CHINESE PARTY (as a new concept). But non-educational vocational training is listed on the encouraged list.
- “Real estate” is moved from the restricted ones to the allowed ones.
- The foreign investor can set up the wholly invested E-COMMERCE company in China. Online publishing is put on the prohibition list.
- The wholesale and retail of the tobacco is moved from restriction to the prohibition list.
- Medical institution is moved from the allowed list to the restriction ones and only restricted by the Joint Venture and Contractual Joint Venture.
- The manufacturing of the finished automobile, special automobile and monocycle is listed on the restriction list and the equity of the Chinese party should be no less than 50%.
- A lot of products in the manufacturing industry are deleted from the restriction list, such as the beverage, the raw chemical material, the chemical products, the transportation equipments, the telecom equipments, the computer and other digital equipments. But some is still listed on the restriction list such as the raw sugar, the boat repairing, designing and manufacturing.