Retail Compass Summer edition 2019

New Catalogue of Encouraged Industries for Foreign Investment 2019 (China)

Published on 04 July 2019

The National Development and Reform Commission and the Ministry of Commerce in China have issued an exposure draft of the Catalogue of Encouraged Industries for Foreign Investment (Catalogue).

What is happening?

A new Catalogue is expected to be released late in 2019.

The Catalogue will seek to further improve the business environment, expand the scope of foreign investment and optimize industrial and regional foreign investment.

Why does it matter?

The Catalogue consists of two parts:

  1. The National Catalogue of Encouraged Industries for Foreign Investment which encourages investment in the Wholesale and Retail industries, including:
  • modern logistics such as joint distribution of general merchandise, cryogenic distribution of fresh produce and special drugs, and relevant technical services,
  • rural distribution chains, and
  • construction and operation of pallets and container unit sharing systems.

2. The Catalogue of Industries for Foreign Investment in Central and Western China which applies to foreign investment in the central and western regions, north-east China and

  • Hainan Province including
  • Heilongjiang Province
  • Henan Province
  • Hainan Province
  • Municipality of Chongqing
  • Sichuan Province
  • Xizang (Tibet) Autonomous Region
  • Shanxi Province, and
  • Xinjiang Autonomous Region.

Currently, the Negative List (Edition 2018) prohibits the investment in the wholesale and retail of tobacco leaf, cigarettes and other tobacco products. However, foreign investors can actively invest in the encouraged sectors or any sector that is not prohibited or restricted.

What action should you take?

If you do business in or otherwise invest in China, be aware of the upcoming changes to the Catalogue.

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