Recently the Directory for Foreign Investment Industry 2017 has promulgated. According to it, China would further reduce restricted measures, enhance foreign capital introduction and create higher open environment. Such favorable policy has aroused the interests of many foreign merchants when it was promulgated, and the calls for consulting such favorable policy were answered endlessly. The editor sorted out the hot consulting problems and is expected to provide help to all of you.
Is the new Directory for Foreign Investment Industry coming to promulgate?
Yes. On July 28, 2017, National Development and Reform Commission and Ministry of Commerce of China promulgated jointly the Directory for Foreign Investment Industry (Revision 2017).
What is its revision? Does the Directory for Foreign Investment Industry change frequently?
This is the 7th revision of the Directory for Foreign Investment Industry as it was promulgated firstly in 1995. This time its revision cycle was shorter and its open field is wider. This is an important reform of China for opening doors to the world and improving the investment environment of China.
What is the highlight of the revision?
Except for further improve the opening level of service industry, manufacturing industry and mining industry, the best highlight of the Directory for Foreign Investment Industry 2017 is the one that foreign merger and acquisition without involving in restricted measures is changed from approval to “record management” in addition to the correlated merger and acquisition.
What is the change when comparing with Directory 2015?
Comparing with the 2015 version, the new Directory involves in the changes in three directions:
1. To further reduce the scope of incorporation and change approval of foreign-invested enterprise. In addition to the correlated merger and acquisition, the foreign merger and acquisition, enterprise incorporation and change with special management measures will not be involved, including the listed company introduces foreign investor's strategy investment; all of them will be put into the “Record Management”.
2. To further improve the opening level of service industry, manufacturing industry and mining industry. Only 63 restricted measures have been retained and 30 restricted measures have been reduced when comparing with Directory 2015. For the service industry, the restrictions on foreign capital access to credit investigation and rating service, accounting, auditing, large-scale agricultural product wholesales market construction and operation fields have been cancelled; for the manufacturing industry, the restrictions on foreign capital access to rail transit transport and communication facilities, motorcycle manufacturing, biology liquid fuel and other production fields have been cancelled; for the mining industry, the restrictions on foreign capital access to nonconventional oil and gas, precious metal and lithium mineral and other fields have been cancelled.
3. To further enlarge the encouraged-policy scope. The Directory covers totally 348 encouragement items. Comparing with 2015 version, 6 items have been increased and 35 items have been modified, and the ones of virtual reality (VR), augmented reality (AR) equipment research and development, R&D and manufacturing of key parts of 3D printing equipment, urban parking facility construction and other items have been newly increased.
What is its important significance?
To further open wider to the outside world, introduce to use foreign capital actively, encourage continuously foreign investment to conform to the fields of industrial transformation and upgrading, and give full play to the acceleration role of foreign-invested enterprise for the substantial economy.