和信国际,pthlegal

The new policy came into force as of December 1st, 2007.

Comparing to the Catalogue for the Guidance of Foreign Investment Industries promulgated on November 2007, there are 2 important adjustments:

1. "Development and construction of residential properties", which was once in the list of the former Catalogue of Encouraged Foreign Investment Industries, is canceled in the new Catalogue.

2. "Real estate transaction in second-grade market and medium and brokerage companies" is added into the list of Catalogue of Restricted Foreign Investment Industries.

Other context remains the same.

Foreign capital is encouraged to help develop service outsourcing and modern logistics.

The manufacturing sector is also open to foreign investment in high technology, equipment manufacturing and new materials industries, but foreign investment in traditional manufacturing industries in which China already had "mature technologies and relatively strong production capacity" is not encouraged.

The government will also curb the expansion of export-oriented industries to reduce ballooning trade surplus, which has stirred protectionist sentiment among major trade partners.

Amid growing domestic concern that surging foreign trade was failing to benefit people in central and western China, investment regulators are focusing on upgrading industries in the poorer areas of inland China.

The government would also introduce a revised version of the guide for foreign investors in central and western regions.

China is the largest recipient of foreign investment of all developing nations for 15 successive years. But a 2004 report to the UN Conference on Trade and Development noted China attracted per capita foreign investment of 47 U.S. dollars, much lower than the 534 U.S. dollars per person that was invested in developed countries and below the world average of 107 U.S. dollars.