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(Dec 02, 2007) China's National Development and Reform Commission (NDRC) and the Ministry of Commerce MOC) issued the revised Catalog of Foreign Investment Industries on October 31, 2007, to be implemented as of December 1, 2007. (NDRC Web site). Compared to the 2004 Catalog it replaced, the new Catalog, in conformity with China's World Trade Organization (WTO) commitments, eases restrictions on foreign investment in commercial services, finance, and certain types of manufacturing. However, it "greatly expands" limits on foreign investment in real estate and imposes tighter controls on media, the Internet, and program production. (Posting of Donald Clarke, to CHINALAW@ HERMES.GWU.EDU (Nov. 17, 2007), transmitting China Issues New Foreign Investment Restrictions, CHINA MATTERS (Nov. 2007), Paul Hastings Web site, available at The 2007 Catalog retains the classification of industries based on those that are encouraged, restricted, or prohibited, but does not include the part of the 2004 Catalog's appendix on China's timetable for fulfillment of its WTO obligations, because most of the obligations have now been met. One major exception is foreign ownership limits in basic telecommunications. Overall, the new Catalog is described as being "more detailed and comprehensive, especially for certain manufacturing industries." (Id.)

In addition, the MOC issued a revised Catalog of Technology Prohibited and Restricted from Import by China on October 23, 2007, effective November 22, replacing a 2001 version. The issuing decree is available on the MOC Web site, at
(last visited Nov. 28, 2007). It is linked to the Chinese text of the Catalog.

Author: Wendy Zeldin More by this author
Topic: Foreign investment More on this topic
Jurisdiction: China More about this jurisdiction

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Last updated: 12/02/2007