China Expands Foreign Investment Catalogue to Attract Capital in Key Growth Sectors
China’s government has formally implemented the 2025 edition of its Catalogue of Encouraged Industries for Foreign Investment, which took effect on February 1, 2026, replacing the 2022 version. According to the National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOFCOM), the updated catalogue is designed to guide foreign investment toward high‑value sectors and emerging regions, while providing policy support and practical incentives for investors.
The catalogue lists 1,679 encouraged industries, including a net increase of 205 new items and 303 revisions compared with the previous edition. It is divided into a national list and a regional list, the latter targeting central, western, and northeastern China, as well as Hainan Province. The move reflects China’s strategy to promote industrial upgrading, attract high‑tech and modern service investment, and support balanced regional development.
Key sectors highlighted in the 2025 catalogue include advanced manufacturing — such as high-end medical equipment, robotics components, and smart energy systems — modern services including business and technical services, scientific research, and emerging service consumption, and green industries focused on energy conservation and environmental protection. Projects listed in the catalogue are eligible for preferential measures, such as tariff exemptions on imported equipment, priority access to land, and tax incentives for reinvested profits.
Government officials have emphasised that the updated catalogue is part of a broader effort to stabilise foreign direct investment and enhance China’s economic openness. By signaling which sectors and regions are prioritised, the authorities aim to give foreign investors greater certainty and support long-term investment decisions. Analysts say the update underscores China’s intent to maintain a competitive investment environment and strengthen integration into global supply chains, particularly in technology-intensive and high-value industries.
The revisions are expected to particularly benefit multinational firms in advanced manufacturing and technology, companies providing modern services, and investors targeting regions outside the traditional coastal hubs. For these investors, the catalogue provides both regulatory clarity and practical advantages, making China a more attractive destination for strategic, long-term investment
