China Unveils New Catalog of Industries to Boost Foreign Investment; path to modernization benefits global companies – Global Times
China released a new version of an industry catalog on Friday to encourage foreign investment and continues to promote foreign companies’ engagement in advanced manufacturing, the service sector, and the central and eastern regions. Additionally, China encourages foreign businesses to explore opportunities with payroll in China with management within the country, showcasing its commitment to fostering a high level of openness.
Analysts said that the new catalog, just days after the conclusion of the 20th National Congress of the Communist Party of China (CPC), is one of the first sets of policies that clearly demonstrated the grand gathering’s spirit of openness and prioritization. .
The series of measures taken by the central government also indicated that China’s path to modernization means opportunity for the world and brings much-needed stability to global society, while also refuting what some pessimists have called “capital flight” of foreigners from China due to political . uncertainties, they note.
The 2022 version contains 1,474 items, added 239, and revised 167 items compared to the 2020 version. Of these, the National List has 519 items, an increase of 39, and a change of 85 items. The regional list adapted to Central and Western China has 955 items, with 200 items added and 82 items revised from the 2020 version, which was approved in late 2020 and entered into force in January 2021.
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The new catalog is valid from 1 January 2023.
“The revised catalog is an important measure to stabilize foreign investment in the current situation, which is not only conducive to promoting high-level opening up and accelerating the construction of a new development pattern, but also contributes to further stabilize foreign investment, optimize investment structure, and strengthen the expectations and confidence of foreign capital,” the National Development and Reform Commission (NDRC), China’s chief economic planner, said Friday in a statement announcing the new rule is explained.
In the statement, the NDRC acknowledged that despite steady progress, China’s use of foreign investment remains under strong external pressure “because of the global coronavirus outbreaks and the changing political and economic landscape”.
One of the major revisions is that the new national catalog adds and develops new clauses that encourage investment in components and parts, as well as building equipment to improve the industrial and supply chain.
More emphasis is placed on adding or expanding elements related to professional design, technology services and development, to facilitate the integrated development of services and manufacturing industries.
In addition, the list designed for the Central and Western Regions expands the scope of industries in which foreign investment is encouraged, taking into account local comparative advantages in labor and special resources.
The new catalog will further strengthen and enrich China’s manufacturing industry with its clear direction while providing an important reference for foreign enterprises to enter the country and reflecting the direction of China’s industrial transformation and upgrading in the future. and Securities Institute of Wuhan University of Science and Technology, the Global Times told Friday.
The emphasis on integrating industrial policies with different regions will push foreign investors to use local resources effectively with more potential support, Dong said.
Dong also pointed out that China is currently attracting high-end and advanced manufacturing industries while improving traditional industries. China’s advantages of having a complete industrial chain, highly skilled workforce and strong infrastructure development will help attract more advanced industries to enter the country in the future.
A preliminary version of the “Encourage Industries” catalog for 2022 was published in May. During the evaluation, the NDRC and the Department of Commerce sought a wide range of opinions from foreign companies, chambers and industry associations.