In early 2017, the State Council released a notice setting out 20 Measures to attract more foreign investment. Surrounding the theme of “further actions”, the notice raises 20 specific tasks in three aspects including expanding the opening up of more sectors for foreign investments, creating a fair competition environment and attracting foreign capital. Soon after, China released the new PFTZ negative list for foreign investments and Industry Catalogue Guide for Foreign Investment (2017 version) (the “2017 version Catalogue”) to implement the opening-up policies of relevant sectors to foreign capital.
The 2017 version Catalogue is, for the first time, in the form of a negative list which lists out the special administrative measures relating to restricted and prohibited items for foreign investments. Meanwhile, it also amends certain relevant items in the encouraged industries. The 2017 version Catalogue shall take effect from 28 July 2017.
In this issue of China Tax and Business News Flash, we will give you an overview of the current situation of foreign investment in China, analyse the major changes and applicability of the 2017 version Catalogue, and share our views on the trend and takeaways for foreign capital to invest in China in the future.