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On January 1, 2019, the National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOFCOM) jointly released a notice, seeking feedback on the new Catalogue of Encouraged Foreign Investment Industries. The public consultation is set to end on March 2.
The Catalogue consists of two parts. The first part is the national catalogue of encouraged foreign investment industries, which applies to foreign investment management in provinces across the country. The second part is the catalogue of priority industries for foreign investment in central and western China, which is applicable to foreign investment management in the central and western regions, northeastern regions, as well as Hainan Province.
The manufacturing sector is a particular area of focus in the new Catalogue, with 305 items from 24 categories listed in the draft. Among them, 21 are manufacturing industries for chemical raw materials and chemical products, including: development and manufacturing of PVC materials and organic silicon materials; manufacturing of supporting raw materials for synthetic materials like NDC and adiponitrile; manufacturing of raw materials for synthetic fibers like hexamethylene adipamide; manufacturing of synthetic rubber, engineering plastics, fine chemicals, high performance coatings, new fluorine-containing materials, and organic polymer materials; development and manufacturing of new fertilizers and pesticides; treatment and comprehensive use of waste gas, waste water and waste residues; etc.
In addition, mining industries like hydrocarbon exploration, industries for manufacturing chemical fibers like differential chemical fiber, industries for manufacturing plastics like biodegradable plastics, and industries for manufacturing non-metallic mineral products like new chemical building materials are also listed in the Catalogue.
The new Catalogue will help foster a more favorable business environment for foreign investors and thus significantly expand foreign investment within the country. Meanwhile, with the 21 chemicals manufacturing industries listed, the Catalogue will invite more foreign capital into relevant businesses and enable stronger financial support for chemicals enterprises, especially those pursuing high-tech or eco-friendly production.
