The Foreign Investment Industrial Catalogue, which governs foreign investment in Chinese companies, has been amended and will becoming effective from 30 January, 2012. It sets out in detail the industrial sectors where foreign investment falls into the categories of encouraged, restricted or prohibited. The new Catalogue will impact all new foreign investments in China over the next few years and clearly shows the Chinese government’s increasing desire to encourage foreign investment by reducing the number of restricted and prohibited areas. Areas now encouraged are those such as high-technology, high-end manufacturing, energy conservation, environmental protection and advanced services.
TMF China are able to assist foreign investors with incorporations of new companies and can provide details of the minimum requirements to ensure the company is compliant with local law regulations.