catalogue for the guidance of foreign investment industries

By Xu Ping, Partner, King & Wood’s FDI Department

In continued support of foreign direct investment into China, on April 13, 2010, China’s State Council released the Further Views on the Utilization of Foreign Capital (国务院关于进一步做好利用外资工作的若干意见). These new guidelines for foreign investment in China encourage foreign funds to flow into high-end manufacturing, hi-tech and eco-friendly sectors and to the central and western areas of the nation. The guidelines restrict investment into environmentally unsound projects and in sectors suffering from overcapacity. Meanwhile, the new guidelines also promise more favorable policies for foreign-funded companies, including an array of new tax incentives.Continue Reading China Reaffirms Support for Foreign Investment

By: Mark Schaub, Partner Shanghai Office of King & Wood,Corporate Group

Despite 30 years of opening up, actual Chinese government policy remains opaque. Although not as incomprehensible to the outsider as Kremlin watching was in the Cold War there are still few opportunities to really grasp what type of foreign investment is actually in favor at any given time. Circular 57, also known as Catalogue for the Guidance of Foreign Investment Industries (“Catalogue”) was overhauled late last year and does provide some hints in this regard.Continue Reading Reading the Tea Leaves: Changes to Foreign Investment Catalogue