The National Development and Reform Commission, Ministry of Commerce publicly issued Decree No. 38 on December 28, 2020, issuing the full text of the Catalogue of Encouraged Industries for Foreign Investment (2020 Edition), which comes into effect on January 27, 2021. The Catalogue of Encouraged Industries for Foreign Investment (2019 Edition) shall be repealed at the same time.

The Catalogue of Encouraged Industries for Foreign Investment (2020 Edition) has a total of 1235 entries. Compared with the 2019 Edition, 127 entries have been added and 88 entries have been revised to further expand the scope of encouraged industries for foreign investment. The main changes include:

1.	Further play the active role of foreign investment in the industrial chain and supply chain.

The national catalogue continues to take manufacture as a key direction to encourage foreign investment. In the field of raw materials, add or modify high-purity electronic grade hydrofluoric acid, hydrogen fluoride, special glass fibre, polarizer base film, diffusion film, mask, polyvinyl items such as polyamines and high-performance fibre. In the field of spare parts, items such as high-pressure vacuum components, special valves, special bearings, special glass, wheel speed sensors, etc. have been added or modified. In the field of terminal products, items such as integrated circuit test equipment, L3/L4/L5 autonomous driving hardware, laser projection equipment, ultra-high-definition televisions, ventilators, ECMO, artificial intelligence auxiliary medical equipment, etc. have been added or modified.

2.	Further encourage foreign investment in production-oriented service industries.

The national catalogue will promote the integrated development of the service industry and manufacturing industry as one of the focuses of this revision and develop new business formats and new infrastructure construction in the process of opening. In the field of research and development and design, add or modify items such as fifth-generation mobile communication technology research and development, blockchain technology development, and sewage treatment facility design. In the field of business services, new items such as maintenance of high-end equipment, transformation and integration of digital production lines have been added. In the field of modern logistics, items such as cross-border e-commerce retail, bulk commodity import and export distribution centres, and community chain distribution have been added or modified. In the field of information services, new items such as online education, online medical care, and online office have been added.

3.	Further encourage foreign investment in the central and western regions.

According to the opinions of relevant provinces (autonomous regions and municipalities), the central and western catalogue appropriately adds items to promote regional open economic development and export-oriented industrial clusters. In Heilongjiang, Yunnan and other provinces, new items such as agricultural product processing and tourism development have been added. In Henan, Shaanxi, Guangxi and other provinces, new items such as medical equipment, epidemic prevention and protection products, and raw material medicine production have been added. In Hubei, Sichuan, Chongqing and other provinces, new items such as semiconductor materials, graphene, and industrial ceramics have been added. In Liaoning, Anhui, and Hunan and other provinces, new items such as vocational college entries have been added. In Hainan, new items related to commerce, shipping, finance, and tourism have been added to support the construction of Hainan Free Trade Port.

The Catalogue of Encouraged Industries for Foreign Investment (2020 Edition) is an important foreign investment promotion policy in China. Foreign investment projects that belong to the Catalogue of Encouraged Industries for Foreign Investment (2020 Edition) can enjoy preferential treatment such as taxation and land use in accordance with laws, administrative regulations or the provisions of the State Council.