Encouraging and Guiding Foreign Investment in Advanced Manufacturing and Modern Services

Recently, with the approval of the State Council, the National Development and Reform Commission and the Ministry of Commerce have released the “Catalogue of Industries Encouraging Foreign Investment (2025 Edition)” (hereinafter referred to as the “Encouragement Catalogue”), which will take effect from February 1, 2026.

The Encouragement Catalogue is a significant policy for promoting foreign investment in China, as well as an important policy for foreign investment in industries and regions. The revision and release of the new edition of the Encouragement Catalogue is a key measure to attract and utilize foreign investment more effectively. The overall objective of this revision is to implement the decisions and arrangements for stabilizing foreign investment, guiding more foreign capital into areas such as advanced manufacturing, modern services, high and new technology, energy conservation, and environmental protection, as well as into the central, western, and northeastern regions of China.

This revision extensively solicited and incorporated opinions from foreign-invested enterprises, foreign chambers of commerce and associations, industry associations, relevant experts, various departments, and local governments. Public opinions were also gathered through online channels. The new edition of the Encouragement Catalogue contains a total of 1,679 entries, representing a net increase of 205 entries and modifications to 303 entries compared to the 2022 edition. Specifically, the “Nationwide Catalogue of Industries Encouraging Foreign Investment” (hereinafter referred to as the “Nationwide Catalogue”) comprises 619 entries, with 100 additions and 131 modifications. The “Catalogue of Advantageous Industries for Foreign Investment in Central, Western, and Northeastern Regions” (hereinafter referred to as the “Regional Catalogue”) comprises 1,060 entries, with 105 additions and 172 modifications.

The main changes are as follows: First, encouraging and guiding foreign investment in advanced manufacturing. The Nationwide Catalogue has added or expanded entries related to end products, components, and raw materials to enhance the development level of industrial and supply chains. Second, encouraging and guiding foreign investment in modern services. The Nationwide Catalogue has added or expanded entries related to business services, technical services, scientific research, and service consumption to promote the high-quality development of the service sector. Third, encouraging and guiding foreign investment in the central, western, and northeastern regions, as well as Hainan Province. Based on local resource endowments, distinctive advantages, and actual industrial development, the scope of encouragement in the Regional Catalogue has been expanded.

In the next steps, the National Development and Reform Commission will work with relevant departments to strengthen guidance and coordination, ensuring the implementation of policy measures. At the same time, multiple measures will be taken to create a first-class business environment that is market-oriented, law-based, and internationalized for foreign investors in China, enabling more multinational companies to better share in China’s development opportunities.

Expanding foreign capital inflows by leveraging key projects. The role of the task force for major foreign-invested projects will be utilized to open green channels and advance the construction of the first eight batches of projects in a rolling manner. Efforts will be accelerated to launch a new batch of major foreign-invested projects, and coordination will be strengthened to resolve issues related to land use, sea use, environmental impact assessments, and energy consumption at the national level, further leveraging the demonstrative and driving role of major foreign-invested projects.

Continuously improving the satisfaction of foreign-invested enterprises. Special campaigns to serve foreign-invested enterprises will be carried out, using various channels to understand and address the problems and demands faced by enterprises during investment implementation and production operations. Communication and exchanges with foreign investors, foreign-invested enterprises, and foreign chambers of commerce and associations will be strengthened to promptly gather opinions and suggestions, providing convenience for foreign investors in China in accordance with the law.

Building platforms for investment and cooperation between Chinese and foreign enterprises. International industrial investment and cooperation matchmaking events will be organized in a timely manner to create platforms for foreign investment in China and for local governments to promote foreign investment, facilitating more project negotiations and signings.

State Council

The State Council is the chief administrative authority of the People’s Republic of China, functioning as the country’s cabinet and executive body of the National People’s Congress. It was established by the 1954 Constitution, succeeding the former Government Administration Council of the Central People’s Government. Headed by the Premier, it is responsible for implementing laws and overseeing the vast bureaucracy of ministries and commissions that manage China’s day-to-day governance.

National Development and Reform Commission

The National Development and Reform Commission (NDRC) is a macroeconomic management agency under China’s State Council, established in 2003. It is the primary government body responsible for formulating and implementing national economic and social development strategies, medium- and long-term plans, and guiding overall economic system reform in China.

Ministry of Commerce

The Ministry of Commerce of the People’s Republic of China is the executive department of the State Council responsible for formulating and implementing policies on domestic and foreign trade, international economic cooperation, and foreign investment. It was established in its current form in 2003, succeeding previous foreign trade and economic cooperation bodies that date back to the early years of the People’s Republic. The ministry plays a central role in managing China’s commercial relations and driving its economic development strategy.

Catalogue of Industries Encouraging Foreign Investment (2025 Edition)

The “Catalogue of Industries Encouraging Foreign Investment (2025 Edition)” is a key policy document issued by the Chinese government to guide and attract foreign capital into specific sectors of its economy. It represents the latest iteration of a framework that has evolved since the 1990s, continuously updating to reflect national strategic priorities such as high-tech manufacturing and green development. By outlining encouraged industries, it aims to promote industrial upgrading and deeper integration into the global economy.

Nationwide Catalogue of Industries Encouraging Foreign Investment

The “Nationwide Catalogue of Industries Encouraging Foreign Investment” is not a physical place or cultural site, but a key policy document issued by the Chinese government. It outlines specific sectors and industries where foreign investment is actively welcomed and supported, serving as a guide to direct capital into priority areas of the national economy. Historically, it has been revised multiple times since its inception to reflect China’s evolving economic development strategies and its integration into the global market.

Catalogue of Advantageous Industries for Foreign Investment in Central, Western, and Northeastern Regions

This is not a physical place or cultural site, but a government policy document issued by China’s National Development and Reform Commission. It serves as an official guide, listing specific industries in China’s less-developed central, western, and northeastern regions that are encouraged to receive foreign investment. Its history reflects China’s ongoing economic strategy to attract foreign capital and technology to boost development in these regions, with the catalogue being periodically updated since its inception.

Hainan Province

Hainan Province is China’s southernmost island province, often called the “Hawaii of China” for its tropical climate and beaches. Historically, it was a remote frontier area but became a key point on ancient maritime trade routes. In 1988, it was designated as a separate province and later as a major free-trade port to boost economic development.

central, western, and northeastern regions

This phrase broadly describes geographic areas within China, not a single specific site. Historically, these regions have been the cradle of Chinese civilization, with the **Central Plains (中原)** along the Yellow River forming the ancient heartland of dynasties like the Shang and Zhou. The diverse western and northeastern areas were historically home to various ethnic groups and kingdoms, later integrated into the Chinese empire, shaping the country’s expansive cultural and political geography.