Foreign Direct Investment

A close look at China's newly-updated foreign investment catalogue reveals trends that reinforce the government's policy objectives. Numerous new additions encourage investment in seven strategic emerging industries, while the catalogue scales back on encouraging investment in lower technology and lower value-added sectors.

Including: National Development and Reform Commission, Foreign Investment Industrial Guidance Catalogue (Revised in 2011) (Full translation available in the Feb issue)

Tax policy continued to encourage R&D institutions.

Tax policy continued to encourage foreign-invested R&D institutions.

More new rules have been published that clarify the cross-border flow of Renminbi and they signal that China has formally opened the channel for cross-border and nation-wide Renminbi foreign direct investment

More outbound cross-border Rmb investments expected from FDI earnings.

Onshore oil exploitation pays resource tax.

FDI in Rmb officially allowed.

Offshore oil exploitation pays resource tax.