China has put "Catalogue for the Guidance of Foreign Investment Industries
(Amended in 2007)" into force from December 1. This catalogue was published
on October 31 by the National Development and Reform Commission (NDRC) and the
Ministry of Commerce of the People's Republic of China after getting the approval
of the State Council. With this, "Catalogue for the Guidance of Foreign
Investment Industries (Amended in 2004)" published on November 30, 2004
has been abolished. The catalogue of encouraged textile and chemical-related
products for foreign investment in "Catalogue for the Guidance of Foreign
Investment Industries (Amended in 2007)" is shown in the table below.
The following are the features of "Catalogue for the Guidance of Foreign
Investment Industries (Amended in 2007)" announced by personnel from the
Ministry of Commerce of the People's Republic of China at the press conference.
The catalogue of encouraged textile and chemical-related
products for foreign investment in "Catalogue for the Guidance of Foreign
Investment Industries (Amended in 2007)"
Industry |
No. |
Encouraged products |
(4)Tobacco Processing Industry |
1 |
Diacetate fiber and tows(limited to equity joint
ventures or contractual joint ventures) |
(5) Textile Industry |
1 |
Production of special textiles for industrial
use with high and new technology |
2 |
Dyeing, weaving and processing of high-grade
fabric |
3 |
Processing of special natural fiber products
satisfying the requirement of comprehensive utilization of ecology and resources
and environment protection (including animal fiber other than sheep’s wool,
hemp, bamboo fiber, silk thread and colored cotton) |
4 |
Production of clothes with computer integrated
manufacturing systems |
5 |
Production of top-grade carpets, embroidery and
drawnwork products |
(10) Chemical Raw Material and Products Manufacturing
Industry |
7 |
Production of synthetic fiber raw materials:
PTA, caprolactam, nylon 66 salt and spandex raw material |
(12) Chemical Fiber Manufacturing
Industry |
1 |
Production of hi-tech chemical fiber of differential
chemical fiber, aramid, carbon fiber, polyethylene of high-strength and high-mode,
polyphenylene sulfide (PPS) |
2 |
Production of environmental protection chemical
fiber such as new solvent cellulose fibers |
3 |
Production of new styles of fiber and non-fiber
polyester:polytrimethylene terephthalate(PTT), polyethylenenaphthalate(PEN) and
polybutyleneterephthalate (PBT) |
4 |
Production of new style fiber material making
use of renewable resources, biomass technology:polylacticacid fiber(PLA) and
bio-method PDO fiber |
5 |
Production of nylon single lines with a production
capacity of over 100 tons per day. |
6 |
Production of radial tire cord and aramid fiber
for belts |
(14) Non-metal Mineral Products Processing
Industry |
5 |
Production of glass fiber and glass fiber reinforced
plastic products with an annual capacity of 50,000 tons or more for single line |
6 |
Production of glass fiber chopped strand mats,
glass fiber felt, micro-electronics glass fiber cloth and thin felt |
(18) Special Equipment Manufacturing |
56 |
Development and production of equipment for new
types of knitting machines and related products and textile testing, measurement
and laboratory equipment |
57 |
Production of computer controlled jacquard machines |
The features of "Catalogue for the Guidance of Foreign
Investment Industries (Amended in 2007)"
(1) Expanding the areas for foreign investment
The new catalogue has a total
of 478 entries for foreign investment projects categorized into "encouraged," "restricted" and "prohibited." Of
those, 351 are "encouraged," an increase of 94, or from 69% to 73%
of the total. 87 are "restricted," falling from 21% to 18%. 40 are "prohibited," dropping
from 9% to 8%.
(2) Further improvement in transparency of foreign capital related policy
The
commitments of China's accession to WTO including opened-up trade areas and changed
stock ratios are introduced in this new catalogue. As a result, consistency,
stability and strictness between China's foreign capital inducement policy and
state law and regulation can be maintained, which produces a favorable investment
climate for foreign enterprises, realizing a cooperative goal of equality and
mutual benefit and collaborative development.
(3) Voluntary promotion of innovation and implementation of industrial structure
optimization and upgrading products
The new catalogue enhances encouraged investment for modern agriculture, high-tech
industry, modern service industry, high-end manufacturing and infrastructure
to promote technology innovation of enterprises and optimization and upgrading
of industrial structure.
The entries listed in "Catalogue of Encouraged Hi-tech Products for Foreign
Investment" promulgated in June 2003 are significantly adjusted and added
to the new catalogue as "encouraged."
(4) Emphases on energy savings and environmental protection industry
Energy saving, environmental protection and resource recycling are encouraged.
The new catalogue categorized industries related to recycling-style economy,
clean production, recyclable energy, environmental protection and comprehensive
resources use into "encouraged."
(5) Adjustment in simple export promotion measures
"All for export permitted foreign investment projects" listed in
the old catalogue is abolished.
(6) Collaborative promotion of regional economic growth
Keeping in line with "Western Development," "Rise of Central
China" and "Revitalize Northeast China," the new catalogue does
not add the proviso, "limited to mid-western" for "encouraged" category.
Dominant industries and cultural industries of the mid-western and Northeastern
old industrial towns which need foreign investment encouragement will be thoroughly
considered for being introduced in "Catalogue of Priority Industries for
Foreign Investment in the Central-Western" when revised.
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