Supporting the broad participation of foreign-invested enterprises in “Made in China 2025.”

The “Catalogue of Industries for Foreign Investment Guidance (Revised in 2017)” has expanded the scope of its encouraged‑industry policies—

Supporting the broad participation of foreign-invested enterprises in “Made in China 2025.”

　　On the 29th, Ministry of Commerce spokesperson Sun Jiwen stated that the recently released “Catalogue of Industries for Foreign Investment Guidance (Revised in 2017)” represents another significant reform through which China is proactively opening its doors to the world and improving its investment climate. The new catalogue will better support foreign-invested enterprises in playing a vital role in the development of the real economy.

　　According to the introduction, the 2017 edition of the Catalogue exhibits three key features: First, it further narrows the scope of approval required for the establishment and modification of foreign-invested enterprises. With the exception of “domestic companies, enterprises, or natural persons acquiring domestic companies with which they have affiliated relationships through overseas‑established or controlled entities,” all foreign‑invested mergers and acquisitions that do not involve special access‑related administrative measures— including the introduction of strategic foreign investment in listed companies—are now subject to filing‑based administration. The Ministry of Commerce will concurrently put in place supporting measures and, as appropriate, revise and issue the Measures for the Filing and Administration of the Establishment and Modification of Foreign‑Invested Enterprises, thereby clarifying the filing procedures for such transactions. This will substantially streamline the formalities for foreign‑invested M&A activities and effectively reduce institutional transaction costs.

　　Second, restrictions on foreign investment access in the service sector, manufacturing, and mining have been further relaxed, with the number of restrictive measures reduced to 63—30 fewer than the 93 listed in the 2015 version of the Catalog.

　　Third, the scope of encouraged‑category policies has been further expanded. The Catalogue now includes 348 encouraged items; compared with the 2015 edition, it adds six new entries and revises 35, introducing such projects as the research and development and manufacturing of virtual reality (VR) and augmented reality (AR) devices, the R&D and production of key components for 3D‑printing equipment, and the construction of urban parking facilities. These newly added and revised encouraged items will better facilitate the integration of investment, technology transfer, and talent recruitment, continue to encourage foreign investment in sectors aligned with China’s industrial transformation and upgrading, and support the broad participation of foreign capital in the “Made in China 2025” initiative and the innovation‑driven development strategy. (Reporter Feng Qiyu)