{"id":43226,"date":"2022-11-06T10:53:21","date_gmt":"2022-11-06T10:53:21","guid":{"rendered":"https:\/\/studiozunarelli.com\/2025\/10\/02\/china-directives-in-support-of-foreign-investments-in-but-not-limited-to-manufacturing-sector\/"},"modified":"2026-02-17T12:00:09","modified_gmt":"2026-02-17T12:00:09","slug":"china-directives-in-support-of-foreign-investments-in-but-not-limited-to-manufacturing-sector","status":"publish","type":"post","link":"https:\/\/studiozunarelli.com\/en\/china-directives-in-support-of-foreign-investments-in-but-not-limited-to-manufacturing-sector\/","title":{"rendered":"China: directives in support of foreign investments in, but not limited to, manufacturing sector"},"content":{"rendered":"

On October 13 \u2013 a few days before the opening of the 20th<\/sup> Congress \u2013, the National Development ad Reform Commission, jointly with other five departments (the Ministry of Commerce, the Ministry of Industry and Information Technology, the Ministry of Natural Resources, Ministry of Ecology and Environment and the Ministry of Transport) issued some guidelines aimed at encouraging foreign investments in manufacturing, green technologies and energies sectors. The so-called \u201c\u5173\u4e8e\u4ee5\u5236\u9020\u4e1a\u4e3a\u91cd\u70b9\u4fc3\u8fdb\u5916\u8d44\u6269\u589e\u91cf\u7a33\u5b58\u91cf\u63d0\u8d28\u91cf\u7684\u82e5\u5e72\u653f\u7b56\u63aa\u65bd<\/em> – Various measures and directives for the promotion, attraction, stabilization and enhancement of foreign investments in manufacturing sector<\/em>\u201d (hereinafter referred as \u201cDirectives\u201d), have been enacted on October 25, extending their scope also to other investment sectors for foreign operators.<\/p>\n

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In order to drive investments within a common and general framework, the Directives involve three macro-areas, namely:<\/p>\n

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  1. Optimization of the legal framework for the increase of foreign investment flow;<\/li>\n
  2. Strengthening of services supporting foreign investments;<\/li>\n
  3. Guidance and quality improvement of foreign investments.<\/li>\n<\/ol>\n

    Optimization of the legal framework for the promotion of foreign investments<\/strong><\/p>\n

    The purpose of the Directives is to ensure the correct application of the so-called Negative List. The Negative List – constantly updated – identifies the industrial sectors where foreign investments are prohibited or restricted. In recent years, there has been a constant reduction of these sectors by the Chinese government, with the aim of increasingly encouraging foreign investments even in areas historically considered as strategic. The correct application of this list, to which the Directives refer, requires the elimination of any further restrictive measure that do not fall within its scope and that may hinder the development of foreign investments.<\/p>\n

    This first macro-area focuses, first of all, on the necessity of ensuring that foreign companies investing in China are treated on an equal footing with local companies, in order to guarantee them equal benefit of support policies and equal treatment in the various investment-related operations (licensing, tenders, protection of intellectual property).<\/p>\n

    The local authorities will be therefore responsible to conduct a feasibility assessment of an investment and its environmental impact.<\/p>\n

    In order to successfully implement the above, the Directives emphasize the need for dialogue and cooperation not only between foreign companies and local authorities, but also with other institutions such as Chambers of Commerce and international organizations.<\/p>\n

    Strengthening of the services in support of foreign investments<\/strong><\/p>\n

    In recent years, the pandemic has hindered both the movement of people due to the difficulty of entering and exiting the country and the exchange of goods due to severe slowdowns in the supply chain and logistics in general. Without prejudice to full compliance with the prevention measures for the containment of the Covid-19 pandemic, the Directives emphasize the need to facilitate entry and exit from the territory, simplifying the relevant procedures and making them transparent. Similarly, the coordination of these measures at national level should ensure a positive impact on the normal functioning of the supply chain and the stability of transport.<\/p>\n

    In terms of services, the Government of Beijing considers of great importance the fact that the foreign companies having the appropriate qualifications and requirements, could benefit of the financial support provided by the banks and other financial institutions or local bodies. In parallel, these institutions shall also encourage the reinvestment of profits through appropriate support policies as for example the preferential policies aimed at reducing the investment and management costs.<\/p>\n

    Guidance and quality improvement of foreign investments<\/strong><\/p>\n

    The Directives mention a number of sectors in which foreign companies are particularly encouraged to invest in, namely:<\/p>\n