On 28th June 2017, the National Development and Reform Commission and the Ministry of Commerce on 2nd.Jul.2017 jointly issued a revised “Catalogue of Industries for Guiding Foreign Investment (2017 Version)”, which includes the negative list as well as sectors and industries that the government wants to encourage foreign companies to invest in. The new catalogue will take effect on 28th July 2017. We find the main point on this new catalogue which should be taken care of by the foreign investors.

? The negative list was introduced to the new catalogue

The “negative list” management approach, which identifies sectors and businesses that are off limits or restricted, will be applied for all foreign investment and be implemented nationwide. Under the approach, government approvals are not required for most foreign investment and only investment on the negative list remains subject to approval.

? The restricted and prohibited industries for foreign investment is further reduced 

The catalogue also shortened the list of sectors that completely ban foreign investment from 36 to 28, the restricted item from 38 to 35. Sectors that are off limits to foreign investors include air traffic control and compulsory education institutes. Further, foreign investment now have easier access to China’s highway passenger transport, processing of certain rare metals, as well as manufacturing of rail transit equipment, and cooking oil, among others.

The below industries are opened up:

? Environment protected technology application industry;

? Intelligentization industry, such as VR, AR and 3D printing equipments;

? The manufacturing and selling of the food with special function: such as infant formula food, healthy protection food and formula food for special medical purpose;

? The mining and beneficiation of lithium mineral;

? The electric automobile industry;

? Merger and Acquisition

The merger and acquisition by the foreign investor will be still subject to the approval formalities.