On December 7th, 2016, the National Development and Reform Commission (“NDRC”) and the Ministry of Commerce (“MOFCOM”) jointly issued the Revised Draft of the Catalogue for the Guidance of Foreign Investment Industries (in Chinese: “外商投资产业指导目录（修订稿）”) (“Draft Catalogue”), seeking for public comments. It is the seventh revision of the Catalogue for the Guidance of Foreign Investment Industries (“Catalogue”) from its initial promulgation in 1995.
The Catalogue is a fundamental legal document guiding the entry of foreign investment into China. This revision actually was issued following the recent reform of foreign investment approval system. The Draft Catalogue also shows the opening of significant number of markets that are currently subject to restrictions of entry. Following lists the main highlights of the Draft Catalogue.
1. Structural change to the Catalogue
2. Less restriction on foreign investment
3. Removal of restrictions apply to both foreign and domestic investment