FOREIGN INVESTMENT CATALOG – 6th REVISION
Mar. to Jun. 2015 China Bulletin

The 6th revision of the Foreign Investment Industrial Guidance Catalog (Catalog) became effective April 10, 2015, replacing the 2011 5th revision.  All versions of the Catalog have served to regulate the inflow of foreign investment into China.  The 2015 Catalog does not adopt a negative list, as implemented in the free trade zones, but it substantially reduces the number of industries in the restricted category, as well as those requiring a Chinese investor or majority Chinese ownership.  For example, it removes the cap on foreign ownership of companies engaged in e-commerce and moves technology relating to the Internet of things to the encouraged category.  On the other hand, production of whole cars is now restricted and medical institutions must be set up as joint ventures.

Questions?  Please contact Allan Marson at china.desk@ishimarulaw.com or +1 408-738-0592 #719 for a complimentary consultation on the new foreign investment catalog.