how to enter in to the China market, What is the China Foreign policy for business

how to enter in to the China market, What is the China Foreign policy for business

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    Since 1995, foreign investment in China has been regulated by the Catalogue of Industries for Guiding Foreign Investment (Catalogue). The Catalogue is updated approximately every three years to reflect the government’s then prevailing economic and political goals and policies, and to adjust the directions of foreign investment according to the necessity of economic development of China.
    In accordance with the latest Catalogue issued in 2017 and the 2018 Negative List, foreign investment is classified into four categories:
    • Encouraged. This category includes 348 industries, such as:
      • fruit and vegetable drink production;
      • agricultural machinery manufacture; and
      • development and manufacture of software products.
    • Restricted. Investment in restricted sectors is subject to various limitations. Restricted sectors include 21 industries, such as:
      • domestic water transportation;
      • construction and operation of civil airports;
      • insurance companies or securities companies (the limit on foreign capital ratio will be further relaxed in 2021).
    • Prohibited. Certain businesses are not open to foreign investment. Prohibited sectors include 27 industries, such as:
      • air traffic control;
      • postal companies, domestic express delivery of letters; and
      • consulting of Chinese legal affairs.
    • Permitted. Investments that do not fall into any of the three categories above are generally permitted.
    From 8 October 2016, certain industries in the Catalogue are introduced to the Negative List. Foreign investment in the industries named on the Negative List is subject to the approval of the MOC.
    Answered on 2019-08-07.
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