China Updates Catalogue of Industries for Encouraging Foreign Investment

Issuing Authority: NDRC 

Date of Issuance: December 28, 2020

The National Development and Reform Commission and the Ministry of Commerce released on December 28, 2020 the Catalogue of Industries for Encouraging Foreign Investment (2020 Version). The new catalogue will be implemented from January 27, 2020, when the 2019 version of the catalogue will be revoked. The new catalogue has added 127 items and revised 88 items to expand the scope of industries that encourage foreign investment. Under the new catalogue, foreign companies are encouraged to invest in production services, like 5G telecommunication technology, blockchain technology, and the design of sewage treatment facilities. Foreign companies are also encouraged to invest in central and western provinces, as well as in agricultural product processing and tourism development in Heilongjiang and Yunnan.

Reference: https://www.ndrc.gov.cn/xxgk/zcfb/fzggwl/202012/t20201228_1260594.html

 

NDRC and MOFCOM Release Measures for Security Review of Foreign Investments

Issuing Authority: MOFCOM

Date of Issuance: December 21, 2020

The National Development and Reform Commission and the Ministry of Commerce released on December 19, 2020 the Measures for Security Review of Foreign Investments, to be implemented 30 days after the date of issuance. The regulation has 23 articles about the type of foreign investments to be subject to security review, the institutions, scope and procedures of security review, as well as how to deal with unlawful investment activities. The regulation aims to enhance the accuracy and transparency of security review, reduce the impact on foreign investment activities and protect foreign investors’ legitimate interests. According to the regulation, China will establish a work mechanism to review the security of  foreign investments; the work mechanism will be spearheaded by the NDRC and the MOFCOM.

Reference: http://www.mofcom.gov.cn/article/zwgk/zcfb/202012/20201203024662.shtml