Industrial
Policies
1.
Interim Regulations and
Industrial Catalogue:
In
order to direct the foreign direct investments in compliance with
the national industrial planning and to avoid blindness in
investment, the Interim
Regulations on FDI Directions and the Industrial
Catalogue Guiding Foreign Investment were formulated and
promulgated in the June of 1995. For the first time, the industrial
policies aiming at inviting foreign direct investment were
publicized in the form of laws and regulations, which promote the
transparency of policies. The Regulations
and the Catalogue categorizes
the industrial projects into 4 items: items to be encouraged, items
to be permitted, items to be restricted and items to be forbidden,
which are absolutely clear for the investors.
In
December of year 1997, according to general planning of the national
economic development, the State Development Planning Commission,
State Economic and trade Commission together with the Ministry of
Foreign trade and Economic Cooperation began to revise on the Industrial
Catalogue Guiding Foreign Investment and put it into
enforcement. The revised text of Industrial
Catalogue Guiding Foreign Investment reflects an expansion in
the investment scope encouraged by the state. According to the new
version, 272 items, or 83% of the total, involving the importation
of equipment may enjoy tariff exemption. The revision highlights
priority industries along side the principles of according with
structural adjustment, contributing to the introduction of advanced
technology, and fully embodying our encouragement to invest in
central and western areas. The revised Industrial
Catalogue Guiding Foreign Investment gives encouragement to
foreign businessmen on establishing export-oriented enterprises.
Items in Category of Permission whose products are 100% exported are
listed in Category of Encouragement.
At
present, a new round of revising work is being under the way.
2.
The items to encourage foreign direct investments:
The
items to encourage foreign direct investments mainly includes: items
of agricultural new technology and agricultural comprehensive
development as well as industrial projects of energy, transportation
and vital raw materials; high-tech projects; export-oriented
projects; projects of comprehensively utilizing resources, renewing
resources and prevention and cure of environmental pollution;
projects which can give play to the advantages of western and
central regions. We should actively direct foreign investments
toward the technological up grading of traditional industries as
well as the old industrial bases, while developing continuously the
labor-intensive projects which are in compliance with industrial
policies.
3.
Foreign Direct Investment in services:
In
addition to the above mentioned, our nation is now launching active
pilot projects in utilizing foreign investment in services.
Commercial retailing: Ever since the year of 1992 when the State
Council decided to launch trial operations of foreign-invested
commercial retail businesses in Beijing, Tianjin, Shanghai, Dalian,
Qingdao, Guangzhou and five Special Economic Zones, the utilization
of foreign direct investment in the commercial retail sector has
been opening gradually. Foreign
Trade: in September of the year 1996, with the approval of the State
Council, the Ministry of Foreign Trade and Economic Cooperation (MOFTEC),
published the Interim
Procedures on Establishing Pilot Sino-Foreign Joint Venture
Wholesale Business, which is a major step toward expanding the
opening up in the service sector. Tourism: at the end of the year of
1998, the Interim Procedures
on the Joint Venture Travel
Agent was promulgated, which enlarged the geographical areas for
permitted joint-owned travel agents to the regions outside the
tourism development zones. In recent years, in addition to the
fields of commerce and foreign trade, china has expanded opening in
other areas such as finance, insurance, transportation,
international freight forwarding, legal service, tourism,
advertising, medical care and public health, accounting, assets
appraisal, education, leasing, engineering design, consulting and
real estate. The opening pattern for trade in services has been
transformed form one involving limited sectors to a pattern
encompassing many more industries and sectors. The framework of
opening in trade in services has taken shape. In the future, we will
continue the step-by-step efforts to promote opening in service
sectors, speed up the healthy development and higher the general
level of the service sectors.
(Source
ChinaFDI.org.cn. For more details regarding FDI related information
on China click
here)
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