With the authorization from the State Council, the National Development and Reform Commission and Ministry of Commerce recently published the "Catalogue for the Guidance of Foreign Investment Industries (Amended in 2011)." The catalogue will become effective on Jan. 30, 2012. 

The new catalogue has been adjusted and changed mainly in five areas

First, the opening up has been further expanded, the encouraged items have been increased and the limited and prohibited items have been reduced. Meanwhile, the limit on the foreign investment's share proportion has been cancelled in some areas, and the number of the items with the limit on the share proportion has been reduced to 11. 

Second, reconstruction and promotion of the manufacturing industry are more encouraged. In the new catalogue, new product and technical items of the textile, chemical, machine manufacturing and other industries have been added in the encouraged list. 

Meanwhile, in order to encourage foreign enterprises to invest in the circular economy, the item of reclaiming and treating worn-out electrical and electronic products, electromechanical equipment and batteries has been added in the encouraged list. 

To promote the healthy development of the automobile industry, the item of manufacturing the whole automobile has been deleted from the encouraged list. 

In order to restrain the over capacities and blind duplications of some industries, items, including the polycrystalline silicon and coal chemical industries, have been deleted from the encouraged list. 

Third, to foster strategic emerging industries, the new catalogue encourages foreign enterprises to invest in such industries as energy-saving and environmental protection industries, new-generation information technology industry, biological industry, high-end equipment manufacturing industry, new energy industry, new material industry and new-energy automobile industry.

Fourth, the service industry is more encouraged. In the new catalogue, nine items of the service industry, including the motor vehicle charging station, venture capital enterprise, intellectual property service, sea oil pollution treatment technical service and vocation skill training, have been added in the encouraged list. 

In the encouraged list of the new catalogue, items of the service industry currently account for a larger proportion. Meanwhile, items, such as foreign enterprises investing in medical institutions and financial lease companies, have been move from the limited list into the allowed list. 

Fifth, the coordinated development of regions is encouraged more in the new catalogue.