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Development Trends of Foreign Investment Policies in China

In terms of policies, China is progressively  liberalising restrictions on market access for foreign investors in such areas as investment scope, investment form, geographical location and equity ratio. With the gradual introduction of national treatment, preferential and discriminatory treatments are giving way to standardised treatment, providing a better policy environment for  foreign investment. At the same time, development of the processing trade will continue and move towards transformation and upgrading, while trade in services will be further liberalised according to WTO commitments.

Key areas where foreign investment is encouraged are as follows:
1.Improvement of traditional farming, development of modernised farming and promotion of industrialisation of agriculture;
2.Transportation, energy, raw materials and other fundamental facilities and industries;
3.New-and high-tech industries such as electronic information, bio-engineering, new   materials and aerospace; and establishment of R&D centers, particularly by large multinationals;
4.Utilisation of advanced technologies to improve traditional industries such as machinery, light industry and textiles, and to upgrade the equipment industry;
5.Comprehensive utilisation of resources or regenerate resources, environmental protection and public utility projects;
6.Priority industries in the western region and old industrial bases;
7.Participation in the restructuring and reform of state-owned enterprises through various means such as merger, acquisition and equity holding.

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