The PRC Government regularly updates the Catalogue of Industries for Encouraged Foreign Investment to attract foreign investment for specific industries and regions.
On 15 December 2025, the PRC National Development and Reform Commission and the PRC Ministry of Commerce jointly issued the Catalogue of Industries for Encouraged Foreign Investment (2025 Edition) (“Catalogue 2025”). The Catalogue 2025 will enter into effect on 1 February 2026. Simultaneously with the entering into effect of the new Catalogue 2025, the previous version which was issued in 2022, i.e. the Catalogue of Industries for Encouraged Foreign Investment (2022 Edition) (“Catalogue 2022”), will be repealed and cease to be effective.
The Catalogue 2025 consists of two parts: the Nationwide Catalogue of Industries for Encouraged Foreign Investment (“Nationwide Catalogue”), which applies across the entire country, and the Catalogue of Advantageous Industries for Foreign Investment in Central-Western, Northeastern Regions and Hainan Province (“Regional Catalogue”), which applies specifically to the central-western regions, northeastern China, and Hainan Province.
Compared to the Catalogue 2022, the new Catalogue 2025 has further expanded the industry sectors in which foreign investment is encouraged. Overall, 205 items have been newly added, and 303 items have been revised. The Catalogue 2025 covers a total of 1,679 items. Among them, the Nationwide Catalogue contains 619 items, with 100 additions and 131 revisions, and the Regional Catalogue contains 1,060 items, with 105 additions and 172 revisions.
Below are some major changes brought by the Catalogue 2025.
1. Further encouraging foreign investments in the advanced manufacturing sector
The National Catalogue continues to focus on manufacturing as a priority area for encouraging foreign investment. New additions include:
• Petroleum processing, coking, and nuclear fuel processing;
• Development and production of products and key intermediates for new and special drugs as well as of nucleic acid drugs;
• Transfer of innovative originator drugs to domestic production (including formulation production);
• R&D and production of zero-magnetic medical equipment;
• Manufacturing of intelligent testing equipment and instruments;
• R&D and production of optoelectronic functional inorganic thin films and devices;
• R&D and production of carbon-supported materials for fuel cells in the new energy sector;
• R&D and production of high-speed cameras;
• Development and production of smart energy management and control systems, as well as related metering, testing, and monitoring equipment;
• Deep processing of high-performance light metals and copper alloy materials for new generation information technology industry, aerospace equipment, electric power equipment, advanced rail transit equipment, biomedicine, and high-performance medical equipment, ocean engineering equipment and high-tech ships, energy-saving and new energy vehicles, high-end numerical control machines and robots, agricultural machinery equipment, energy conservation, and environmental protection;
• Design, R&D, and manufacturing of underwater operation robots for ships and deep-sea applications;
• Manufacturing of key equipment for gas-fired power generators;
• Development and manufacturing of key fundamental components for robots;
• R&D and manufacturing of core components for brain–computer interfaces, including brain–computer integration and brain-inspired chips;
• R&D and production of humanoid robots and key components.
2. Further encouraging foreign investments in the modern service industries
Promoting the development of producer services is another key priority of the National Catalogue. New additions include:
• Development of generative artificial intelligence technologies and production of related products;
• R&D of artificial intelligence software, and R&D and manufacturing of intelligent robots and related hardware;
• Language technology development with large language model training and the application of artificial intelligence;
• Operation of common technology platforms or service platforms for new materials;
• Modern high-end shipping services;
• Operation of virtual power plants and related technology R&D.
Further, the National Catalogue supports the revitalization of service consumption by including more service consumption items, such as:
• Veterinary hospitals and pet grooming services;
• Sports tourism services;
• Travel agency operations;
• Consulting, planning, design, and operation services for the camping industry;
• Design, brand development, and operation services for B&Bs (Bed and Breakfasts);
• Property management services;
• Internet Plus healthcare services (Internet + Medical Health Services).
3. Further encouraging foreign investments in the central-western and northeastern Regions and Hainan
Taking into consideration the local resources and industrial advantages of each area, the Catalogue 2025 has further added region-specific items tailored to local conditions. Examples of newly added projects are:
• Inner Mongolia Autonomous Region: R&D of recycling technologies and manufacturing of equipment for emerging industrial waste, such as retired power batteries, photovoltaic modules, wind turbine blades, etc;
• Liaoning Province: R&D and manufacturing of new energy vehicle power battery modules and cells; recycling and reuse of new energy vehicle power batteries; design and manufacturing of cruise ships; operation and services for cruise tourism products;
• Jilin Province: Operation of wind power generation systems and wind farms; operation of ski resorts and supporting hotels;
• Heilongjiang Province: Processing of rice, corn, and livestock and poultry products; biopharmaceutical technology development and production; R&D and manufacturing of ice and snow equipment; R&D and production application of energy storage technologies;
• Anhui Province: R&D and manufacturing of equipment for intelligent voice and quantum communication; professional services for the commercialization of new energy vehicle scientific and technological achievements: transaction agency, value assessment;
• Henan Province: R&D and production of new energy batteries and battery materials; R&D and production of high-end and intelligent lifting and engineering machinery and components; R&D of artificial intelligence software, and R&D and manufacturing of intelligent robots and related hardware;
• Hubei Province: R&D of key technologies for recycling of retired new energy batteries; R&D, manufacturing, and production of new energy storage equipment and power batteries, and their non-ferrous metals and composite materials;
• Hunan Province: Design and R&D of new energy vehicles and manufacturing of components; technology development and product production of integrated photovoltaic–storage–charging systems and new energy vehicle charging and battery-swapping equipment;
• Hainan Province: Marine environmental governance, ecological restoration, and construction of ecological demonstration projects; green port construction; R&D and application of clean energy technologies for ports and vessels; ship management, maintenance, repair, inspection and testing, and related services; supply of materials for international shipping vessels such as cruise ships and aircraft;
• Chongqing Municipality: R&D and production of aerogels, metal–organic framework materials (MOFs), superconducting materials, new carbon materials, additive manufacturing materials, special non-metallic materials, special rubber materials, and fourth-generation compound semiconductors; R&D and manufacturing of small and medium-sized agricultural machinery suitable for hilly and mountainous regions;
• Sichuan Province: Development of metaverse underlying technologies and product production, and design and production of digital content such as games and digital audio (excluding audiovisual program production), and R&D and manufacturing of digital creative technologies and equipment;
• Guizhou Province: R&D and production of basic computing power software and hardware; R&D and production of foundational software and hardware for computing power (computing infrastructure);
• Qinghai Province: operation of solar power generation systems and wind power farms.
4. Benefits for Foreign Investments in Encouraged Sectors
Foreign-invested enterprises engaged in industries and projects listed in the Catalogue 2025 are eligible to enjoy some preferential policies as follows:
• Within the total amount of investment, the import of self-use equipment can be exempt from customs duties, with the exception of products explicitly stipulated by the State as non-exempt.
• Encouraged industrial projects that use land intensively may be granted priority land supply, and the minimum price for land transfer may be set at no less than 70% of the national minimum standard for industrial land transfer corresponding to the local land grade.
• Foreign-invested enterprises located in China’s western regions and Hainan Province may be subject to a Corporate Income Tax at a reduced rate of 15%.
• Further, when foreign investors reinvest dividends distributed by Chinese enterprises for direct investment, and the invested project belongs to the national scope of the Catalogue 2025 and meets relevant conditions, they may enjoy a tax credit on the re-invested profits.
5. Conclusion
The latest revision of the Catalogue 2025 prioritizes advanced manufacturing and modern services. The amendment aims at boosting foreign investment in high-end manufacturing, upgrading the modern service sector and supporting domestic consumption.
This strategy aligns with the policy direction in the Special Administrative Measures for Foreign Investment Access (Negative List) (2024 Edition) which provided “zero restrictions” on foreign investment access in the manufacturing sector and the recent ongoing efforts to widen market access in key service sectors, including telecommunications, the internet and healthcare.
