Update: Catalogue of Priority Industries for Foreign Investment in Central and Western China

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May 16 – China’s National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOC) jointly released the “Catalogue of Priority Industries for Foreign Investment in Central and Western China (hereinafter referred to as the ‘Catalogue’)” on May 14, which is scheduled to take effect on June 10, 2013. The Catalogue replaces its predecessor issued in 2008, and adds 173 categories to the original list.

According to the “Provisions on Guiding Foreign Investment,” foreign-invested projects included in the Catalogue are entitled to the preferential policies granted for the foreign-invested projects under the encouraged category. The Catalogue is organized by province, covering 22 out of the 31 provincial-level administrative regions in Mainland China. Selected industries for each provincial-level region can be found below.

Anhui Province

  • Development and manufacturing of medical devices and key components thereof
  • Water transportation companies (with the Chinese party as the controlling shareholder)
  • Intensive processing and comprehensive utilization of copper, zinc and aluminum (limited to Sino-foreign equity ventures and cooperative joint ventures)
  • Animation creation and production
  • Printing of printed products for packaging and decoration

Chongqing Municipality

  • Development and application of water-saving irrigation technology
  • Production and development of downstream chemical products of natural gas
  • Manufacturing of solar power generation equipment and the components thereof
  • Subsequent industrial development of national key ecological projects
  • Intensive and deep processing of aluminum and magnesium (limited to Sino-foreign equity ventures and cooperative joint ventures)

Gansu Province

  • Production of fruits, vegetables and flower seeds (with the Chinese party as the controlling shareholder)
  • Construction of high-quality wine grape bases
  • Cultivation and processing of high-quality beer raw materials
  • Processing of high-end rare earth application products
  • Broadband business and value-added telecommunication business

Guangxi Province

  • Production of articles specially needed by ethnic minorities
  • Water transportation companies (with the Chinese party as the controlling shareholder)
  • Development and production of artistic ceramics, household ceramics, industrial ceramics and special ceramics
  • Deep processing of rosin
  • Medical and senior care institutions

Guizhou Province

  • Deep processing of potato, konjac and other products
  • Production of abrasive materials and tools
  • Intensive processing of aluminum and other non-ferrous metals (limited to Sino-foreign equity joint venture and cooperative joint venture)
  • Protection, development and operation of tourist attractions and the construction of the supporting facilities thereof
  • Titanium smelting (limited to Sino-foreign equity venture and cooperative joint venture)

Hainan Province

  • Oil-tank manufacturing (with the Chinese party as the controlling shareholder)
  • Golf tools manufacturing
  • Cinema construction and operation (the Chinese party as the controlling shareholder)
  • Development and operation of oceanic and tropical rainforest tourism resources and construction of supporting facilities thereof (with the Chinese party as the controlling shareholder)
  • Manufacturing of deep-ocean engineering equipment

Heilongiiang Province

  • Natural mineral water production (with the Chinese party as the controlling shareholder)
  • Medical and senior care institutions
  • Development and manufacturing of medical devices and key components thereof
  • Protection, development and operation of tourist attractions and the construction of the supporting facilities thereof
  • Development of tourism resources, including forest, ice and snow, and the construction and operation of skiing parks

Henan Province

  • Deep processing of zinc and magnesium (limited to Sino-foreign equity venture and cooperative joint venture)
  • Auto parts manufacturing
  • Medical and senior care institutions
  • Broadband business and value-added telecommunication business
  • Road passenger transportation companies

Hubei Province

  • Development and application of conservation tillage technology
  • Development of electronic technology and products
  • Production of non-woven fabrics and medical textiles
  • Development and manufacturing of laser medical devices
  • Construction and operation of automobile natural gas filling stations

Hunan Province

  • Intensive processing of zinc (limited to Sino-foreign equity ventures and cooperative joint ventures)
  • Production and deep processing of vegetables, fruits and livestock products
  • Production of bismuth compounds (with the Chinese party as the controlling shareholder)
  • Production of radio and television programs and film-making business (limited to Sino-foreign cooperative joint venture)
  • Manufacturing of complete sets of new rubber machinery equipment

Inner Mongolia

  • Production and processing of agricultural and livestock products
  • Construction of high-quality wine grape bases
  • Intensive processing of copper, lead, zinc and aluminum (limited to Sino-foreign equity ventures and cooperative joint ventures)
  • Manufacturing of solar power generation equipment and the components thereof
  • Development, construction and business operation of eco-tourism resources such as ice and snow, forests and grassland

Jiangxi Province

  • Development and production of artistic ceramics, household ceramics, industrial ceramics and special ceramics
  • Processing of high-end rare earth application products
  • Copper ore dressing, and extraction and deep processing of the associated elements thereof
  • Printing of printed products for packaging and decoration

Jilin Province

  • Manufacturing and development medical devices and key components thereof
  • Auto parts manufacturing
  • Auto financing service
  • Animation creation and production
  • Biomass power generation equipment (limited to Sino-foreign equity ventures and cooperative joint ventures)

Liaoning Province

  • Deep processing of natural medicines, crude drugs and traditional Chinese patent medicines
  • Construction and operation of gas, water and drainage networks
  • Pilots training and aviation club (limited to Sino-foreign equity ventures and cooperative joint ventures)
  • Subsequent industrial development of national key ecological projects
  • Medical and senior care institutions

Ningxia Province

  • Cultivation and deep processing of goji berries and grapes
  • Development and processing of articles specially needed by ethnic minorities and Muslim food
  • Deep processing of plaster and ceramic clay
  • Development and production of carbon-based materials
  • Development and manufacturing of solar power generation equipment

Qinghai Province

  • Protection, cultivation, breeding, processing and utilization of plateau animal and plant resources
  • Subsequent industrial development of national key ecological projects
  • Base construction and intensive processing of organic and natural agricultural and livestock products
  • Production of new varieties of traditional Chinese medicines and Tibetan medicines
  • Broadband business and value-added telecommunication business

Shaanxi Province

  • Production and development of downstream chemical products of natural gas
  • Intensive processing of titanium metal
  • Retail and wholesale of general goods
  • Land passenger transportation companies
  • Medical and senior care institutions

Shanxi Province

  • Medical and senior care institutions
  • Production and development of downstream chemical products of coal bed gas
  • Development and application of new generation technology
  • Comprehensive utilization of non-mental ores
  • Broadband business and value-added telecommunication business

Sichuan Province

  • Grape wine and fruit wine
  • Natural gas compressor manufacturing
  • Animation creation and production
  • Medical and senior care institutions
  • Manufacturing of solar power generation equipment and the components thereof

Tibet

  • Development and utilization of salt lake resources (with the Chinese party as the controlling shareholder)
  • Natural mineral water production (with the Chinese party as the controlling shareholder)
  • Deep processing of yak wool and leather products and production of Tibetan carpets
  • Production of new varieties of Tibetan medicines
  • Protection, development and operation of tourist attractions and the construction of the supporting facilities thereof

Xinjiang

  • Construction of high-quality wine grape bases and production of grape wine
  • Cultivation and deep processing of special agricultural products
  • Comprehensive utilization of associated oil and gas resources
  • Recovery and utilization of vented natural gas
  • Cultivation and processing of medicinal plants with local characteristics and development of new medicines

Yunnan Province

  • Development and application of edible resources
  • Development and production of animal and plant medicinal resources
  • Printing of printed products for packaging and decoration
  • Production of radio and television programs and film-making business (limited to Sino-foreign cooperative joint ventures)
  • Medical and senor care institutions

Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia.

For further details or to contact the firm, please email china@dezshira.com, visit www.dezshira.com, or download the company brochure.

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