The National Development and Reform Commission and the Ministry of Commerce jointly enacted the Guide of Industries Open to Foreign Investment (2007 Amendment), which will enter into force on December 1, 2007.

The Amendment to the Guide outlines the following five aspects.  First, uphold opening-up and reform and facilitate industrial restructuring.  In the manufacturing sector, foreign companies are encouraged to invest in high tech, equipment manufacturing and new material industry.  In the service sector, while fully complying with China's promises when acceding to the WTO, more areas are gradually opened with the addition of service outsourcing and modern logistics and abolishment of some limited and restricted areas.  Second, save resource and protect environment.  Foreign companies are encouraged to invest in recyclable economy, green manufacturing, renewable energy, ecological environment protection and thorough use of resources.  Third, the government will also curb the expansion of export-oriented industries to reduce ballooning trade surplus and rapid aggregation of foreign currency reserve.  Fourth, foreign investment is welcomed in the development of western, middle and northeastern areas for harmonious geographical proportion rather than the only allowed in mid-western areas.  Fifth, safeguard national economic security.

2007-11-14