China has unveiled the 2025 version of the Catalogue of Encouraged Industries for Foreign Investment, a key policy document aimed at encouraging broader participation by foreign investors.

The new catalogue was jointly issued by the National Development and Reform Commission and the Ministry of Commerce, and approved by the State Council. It will take effect on Feb 1, 2026.

Its main purpose is to implement the central government's decisions on stabilizing foreign investment, and to further open advanced manufacturing, modern services, high-tech industries, energy conservation, and environmental protection, as well as the central, western, and northeastern regions, to foreign investors.

The 2025 edition contains a total of 1,679 encouraged items. Compared to the 2022 version, the new document features an increase of 205 items and includes 303 modifications. 

In the advanced manufacturing sector, the new catalogue adds and expands relevant items such as terminal products, components, and raw materials. The newly encouraged areas include pharmaceuticals, high-end medical equipment, intelligent inspection instruments, smart energy management systems, marine engineering equipment, key equipment for gas-fired power generation, and core components for robotics.

In the modern services sector, the catalogue broadens support for business services, technical services, scientific research, and service consumption. The newly encouraged areas include shared technology platforms, high-end modern shipping services, virtual power plant operations and related research, as well as pet-related services, sports tourism, camping and homestay services, property management, and internet-enabled healthcare. 

Foreign businesses investing in the areas listed in the catalogue are eligible for preferential policies, including tariff exemptions on imported equipment for self-use, priority land supply for land-intensive industrial projects, flexible land-use arrangements to lower initial costs, and tax incentives for eligible profit reinvestment.

Sources: National Development and Reform Commission, Ministry of Commerce, Xinhua