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Legal Briefing
China's new Catalogue for Guiding Foreign Investment in Industry - an overview of the major changes
Practice Area: Collective Investment Schemes
Sector: Business services
Jurisdiction: China
Published: 18 January 2012
Law Firm: Baker & McKenzie
Overview
On 24th December 2011, the PRC State Council formally promulgated the Catalogue for Guiding Foreign Investment in Industry 2011.
Although the new catalogue continues to restrict or prohibit foreign investment in many industries, it nevertheless has increased the number of encouraged industries and reduced the number of industries in the restricted and prohibited categories. It has also removed restrictions on foreign shareholdings in several industries.
This briefing from Baker & McKenzie details how the new catalogue was prepared with a focus on encouraging foreign investment in high-end manufacturing, high and new technologies, modern services, new energy, energy-saving and environmentally friendly industries. In addition, it outlines the major changes in both the 'encouraged' and 'restricted' categories.
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