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China revises rules on foreign investment

Updated: Mar 13,2015 10:25 PM     Xinhua

BEIJING — China released revised guidance for foreign investment on March 13, relaxing many restrictions on overseas companies.

“The catalogue of industries to guide foreign investment” issued by the National Development and Reform Commission in conjunction with the Ministry of Commerce, opens more areas, mainly services and manufacturing, to foreign business with lower thresholds.

Now in its sixth version, the catalogue consists of three parts: industries where foreign investment is encouraged, restricted and banned.

The latest revision cuts the number of industries with restrictions from 79 to 38.

Industries in which Chinese investors must hold stakes were axed from 43 to 15, and those demanding Chinese investors to hold controlling stakes from 44 to 35.

Foreigners are barred from 36 industries, compared from 38 in the previous version.

Industries where foreigners are encouraged to put money are largely unchanged.

Foreign investors are allowed to do business in all industries not listed in the catalogue.