23 Feb 2017
China Revises Catalogue of Priority Industries for Foreign Investment in Central and Western Regions
The National Development and Reform Commission recently issued the Catalogue of Priority Industries for Foreign Investment in the Central and Western Regions (2017 Revision), which will take effect on 20 March 2017. The Catalogue of Priority Industries for Foreign Investment in the Central and Western Regions (2013 Revision) will be abrogated at the same time.
The 2017 Catalogue (see full text in Chinese) will give support to the central and western regions in undertaking the relocation of foreign-invested industries and raise the level of the development of an open economy in the spirit of the Circular of the State Council on Several Measures for Expanding Opening-up and Actively Using Foreign Capital (State Council Gazette Issue No. 5 ).
The following are some of the main changes made in the newly-revised Catalogue: Promote the transformation and upgrading of traditional industries by adding items such as green food processing and construction of vegetable bases with standardised facilities in provinces with a leading edge in agriculture (animal husbandry); support the development of applicable new and high-tech industries by adding items such as the manufacturing of TFT-LCD glass substrates of Gen 6 or below, integrated circuits, smartphones and tablets as well as biomedicine in some provinces; encourage the accelerated development of service trades by adding some producer service and consumer service items in the light of actual local conditions; promote the development of labour-intensive industries by adding items such as export-oriented textile, apparel and furniture making in provinces with a strong labour force; and strengthen infrastructure and supporting industries by adding items such as the construction of public parking facilities and highway freight transport terminals in some provinces to promote the development of transport and logistics networks.
The Catalogue of Priority Industries for Foreign Investment in the Central and Western Regions extends the same preferential treatment for foreign investment projects of the encouraged category to investment projects of the permitted and restricted categories that can give scope to regional competitive advantages.