Beijing, China – China announced on Wednesday an expansion of the list of sectors eligible for foreign investment incentives.
This is a new step aimed at halting the continued decline in foreign capital inflows
and boosting investor confidence in the world’s second-largest economy.
Chinese authorities stated that the 2025 version of the “List of Industries Encouraged
by Foreign Investment” included the addition of more than 200 new sectors.
This is in addition to restructuring approximately 300 existing sectors,
with a clear focus on advanced manufacturing areas.
Also, modern services, green sectors, and advanced technologies.
She explained that the list was jointly prepared by the National Development
and Reform Commission and the Ministry of Commerce.
Exemption from customs duties
The new list is scheduled to come into effect on February 1, 2026, replacing the 2022 version.
This is within a regulatory framework that grants companies with foreign investment multiple advantages,
including exemption from customs duties on imported equipment.
This also includes obtaining preferential land prices and reduced corporate income tax rates in specific areas.
In addition to offering tax incentives for reinvesting profits within the Chinese market.
The amendments also included expanding the scope of incentives to cover central
and western China, in addition to the northeastern regions and Hainan province.
This is a clear effort to attract foreign investment to less developed regions
and achieve a greater balance in the distribution of economic development.
This move comes at a time when Beijing has intensified
its efforts to support foreign investment in recent months.
Launching pilot programs
These include launching pilot programs in Beijing, Shanghai and several other regions.
This is aimed at expanding market access opportunities in service sectors
such as telecommunications, healthcare and education.
This comes amid ongoing trade tensions with the United States.
According to data from the Chinese Ministry of Commerce, the volume of foreign
direct investment in China reached approximately 693.2 billion yuan.
This will take place during the period from January to November of this year.
Recording a decline of 7.5% compared to the same period last year,
This reflects the challenges that the Chinese government is seeking to
address through the new stimulus package.
