China Releases List of Encouraged Industries for Foreign Investment (2019 Version)

On June 30, China’s National Development and Reform Commission (NDRC) and Ministry of Commerce (MOFCOM) jointly released the List of Encouraged Industries for Foreign Investment (2019 version)[1] which will become effective on July 30, 2019. The implementation of the new list will replace the encouraged industries included in Catalogue of Industries for Guiding Foreign Investment (2017 Revision)[2] and Catalogue of Priority Industries for Foreign Investment in Central and Western China (2017 Revision) released by MOFCOM in 2017.

The List of Encouraged Industries for Foreign Investment (2019 version) includes two parts; one is the national catalogue of encouraged industries for foreign investment, and another is the catalogue of priority industries for foreign investment in central and western China. There are total 1108 catalogues included in the List of Encouraged Industries for Foreign Investment (2019 version), among which 415 catalogues are national catalogue of encouraged industries and 693 catalogues are catalogue of priority industries for foreign investment in central and western China. And the catalogues related to chemical raw materials and products can be accessed here.

Encouraging Policies

Relevant industries within the chemical sector will benefit from the policies from three aspects:

1. Tariff exemptions on the import of self-use equipment within the total investment amount stipulated by the catalogue of encouraged industries for foreign investment.

2. For foreign-invested industries that are eligible for priority industries for foreign investment in western China, the industry income tax will be reduced by 15%.

3. Land use policies will be developed to facilitate the use/lease of land by foreign investors. When determining the reserve price of land, foreign-invested industrial projects can be executed at 70% of the minimum price of the corresponding national industrial land transfer.