China shifts FDI focus to hi-tech areas
30 Dec 2011
China has reshuffled a list of key sectors where it wants to attract foreign investment, as FDI inflows showed signs of a decline for the first time last month.
China's National Development and Reform Commission and ministry of commerce issued a joint statement on Thursday downgrading traditional industries and putting more emphasis in emerging fields such as new energy sources.
The commission, China's top economic planning agency, publishes a "foreign investment catalogue" every few years that divides investment into broad categories: encouraged, allowed, and restricted.
The latest guidelines seek to promote foreign investment in energy-saving and environment-friendly technologies, new-generation information technology, biotechnology, high-end equipment manufacturing, alternative energy, advanced materials and alternative fuel cars.
The guidelines will come into effect on 30 January 2012.
China will cut down restrictions on foreign investment by allowing overseas players to invest in more sectors while lifting caps on the proportion of foreign capital in some sectors.
The new guidelines said the government would continue to welcome foreign investors in high-end manufacturing and modern service industries. It also encourages them to invest in recycling industries.
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