CHINA has updated its Catalog of Encouraged Industries for Foreign Investment to channel more overseas capital into advanced manufacturing and modern services, with additional support for specific regions.

A key focus of the 2025 edition, effective Feb. 1 next year, is attracting foreign investment into advanced manufacturing. The catalog introduces 205 new entries, including the development and production of nucleic acid-based drugs, zero-magnetic medical equipment, smart testing instruments, and key robotic components. It also revises 303 existing items.

Jointly released by the National Development and Reform Commission (NDRC) and the Ministry of Commerce, the catalog promotes foreign investment in modern services such as new-material technology platforms, modern high-end shipping, and virtual power plants.

Furthermore, it broadens support for consumer-oriented services, including pet hospitals and grooming, sports tourism, travel agencies, camping industry consulting, homestay design, and internet healthcare services.

According to a Ministry of Commerce official, eligible companies in listed sectors can benefit from incentives like customs duty exemptions, a preferential corporate income tax rate of 15%, and tax credits for domestic enterprises that reinvest profits into encouraged industries.

The catalog also tailors incentives to promote foreign investment in central, western, northeastern China, and Hainan Province, aligning with local resources and industrial development. For instance, Liaoning Province in the northeast has added cruise tourism services, while Heilongjiang Province now includes the development and manufacturing of ice-and-snow equipment.

An NDRC spokesperson said that the commission will collaborate with other departments to foster a first-class business environment, enabling more multinational companies to participate in China's growth opportunities.(SD-Agencies)