By Victor Tu

As a foreign investor, if you want to invest in China, the first step is to check the updated Foreign Investment Industries Guide Catalog (CATALOG), which rules what you can and what you can’t invest in China. The rules will vary from year to year. The first version was released in year 1995 and updated one was published on June 28, 2017 and take effective on July 28, 2017. During the 22 years, there were 7 copies of the modification on the CATALOG.

The CATALOG is jointly prepared by the Committee of National Development and Reform and the Department of Commerce.

The CATALOG is separating with the three situations for the Foreign Investment.

A. Encouraged 

B. Limited

C. Prohibited 

There are main 12 types and 348 items of Industries are encouraged to be invested by Foreign Investment. 

1.     Agriculture, forestry, animal farming and fishery

2.     Mining industry

3.     Manufacturing industry

4.     Electricity, heat, gas and water production and supply

5.     Transportation, warehousing and postal services

6.     Wholesale and retail trade

7.     Leasing and business services

8.     Scientific research and technical service

9.     Management of water conservancy, environment and public facilities

10.  Education

11.  Health and social work

12.  Culture, sports and entertainment

In meanwhile, there are 35 types of the industries are limited, which mostly refer to the industry that the Chinese Investors must hold the shareholdings more than 51% or Jointly Venture or the person in charge is Chinese. For examples : Printing of the publishing, Auto Manufacturing, Telecommunication of Value Added business, Gasoline Station, Banks , Insurance company, Security and Futures company, Market Research, Broadcasting, Movie Theater, etc. 

At the same time, there are 28 types of the industries are prohibited for the foreign investors, mainly include rare metal and earth mining, tobacco, Chinese legal consulting (except the information of legal environment impact), Geography related, Internet News information related.

Anyway, If you want to invest in the special industry in China, you must read the CATALOG and consult the professionals before action.

Keywords: Ningbo accounting, Ningbo Auditor, Ningbo accountants, Ningbo CPA

关键词：宁波会计，宁波审计，宁波会计师，宁波涉外会计，宁波注册会计师

Victor & Truman，CPAs  宁波纬度会计师事务所（普通合伙）