The Catalogue of Encouraged Industries for Foreign Investment (2022 Edition) is a key policy document issued by NDRC and MOFCOM. It lists the industries and activities where foreign investment is actively encouraged by the Chinese government, including advanced manufacturing, high-tech services, green development, and strategic regional projects.
1. What is the 2022 Encouraged Catalogue?
The Catalogue of Encouraged Industries for Foreign Investment (2022 Edition) consists of two parts: (1) a National Catalogue that applies nationwide; (2) a Catalogue of Advantageous Industries in Central and Western Regions. Sectors listed in the Catalogue may enjoy preferential policies such as tax incentives, land support, or streamlined approval, depending on local implementation.
2. Key Updates in the 2022 Edition
- More focus on advanced manufacturing: semiconductors, new-energy vehicles, high-end equipment, biopharma, and new materials are further encouraged.
- Emphasis on green and low-carbon industries: CCUS, energy-saving equipment, environmental protection, and circular economy projects are highlighted.
- Support for digital and service sectors: encouraged items cover cloud computing, big data, industrial software, smart manufacturing, and modern services.
- Stronger regional incentives: central and western regions, as well as border and pilot zones, receive specific “advantageous industries” to attract FDI.
3. Examples of Encouraged Industries
3.1 Advanced manufacturing
- High-end chemical materials and fine chemicals (e.g. special engineering plastics, high-performance fibers, electronic chemicals).
- Biopharmaceuticals and medical devices, including cell therapies, vaccines, diagnostic reagents, imaging equipment, and implants.
- New-energy vehicle components: power batteries, battery materials, drive motors, controllers, fuel-cell systems, and lightweight structures.
- High-performance composite materials, special ceramics, carbon fibers, and advanced non-metallic materials.
3.2 Green and low-carbon sectors
- Clean energy projects: wind, solar, biomass, geothermal, and distributed natural gas.
- Environmental protection equipment: air pollution control, wastewater treatment, solid waste and hazardous-waste treatment, and resource recovery.
- Energy-saving technologies and equipment for steel, petrochemical, textile, and papermaking industries.
- Carbon capture, utilization, and storage (CCUS) technologies and related equipment.
3.3 Digital economy and modern services
- Integrated circuits, displays, electronic components, and supporting materials.
- Cloud computing infrastructure, data centres, IoT, 5G-related equipment, and industrial internet solutions.
- R&D centres, design centres, testing and certification services, and high-end technical consulting.
- E-commerce platforms, modern logistics, cold-chain logistics, and supply-chain services.
4. Why it matters for foreign investors
Being classified as an “encouraged industry” can unlock tangible benefits for foreign investors, including (subject to local implementation):
- Tax incentives: in some regions, encouraged projects may enjoy reduced corporate income tax rates or other tax preferences.
- Land and infrastructure support: priority in land use, possible reductions in land prices, or more flexible land-use conditions.
- Policy and administrative support: faster approval procedures, better access to local government programmes, and supportive industrial policies.
- Alignment with China’s industrial policy: encouraged sectors are closely aligned with China’s long-term industrial and regional development strategies.
5. How to use the Catalogue in practice
For foreign investors, the 2022 Encouraged Catalogue is not just a list – it is a strategic reference for planning China market entry, restructuring existing entities, or expanding into new product lines. Typical use cases include:
- Assessing whether your existing or planned business activities fall under an encouraged item.
- Choosing the right investment vehicle (e.g. WFOE in China) based on sector and location.
- Leveraging local incentives when negotiating with development zones or industrial parks.
- Designing a compliant and tax-efficient China market entry plan.
6. Official sources and full text
The official Chinese text of the Catalogue of Encouraged Industries for Foreign Investment (2022 Edition) is published by NDRC and MOFCOM. For legal reliance, the Chinese version shall prevail.
- Official Chinese text: NDRC / MOFCOM – 2022 Edition (Chinese only).
- Official PDF (Chinese): as linked on the NDRC and State Council websites.
FDIChina provides a structured English summary for reference only. For critical projects, we recommend cross-checking with the original Chinese text.
7. How FDIChina can support your project
FDIChina helps foreign investors interpret and apply the Encouraged Catalogue in concrete investment projects, including:
- Assessing whether your business is an encouraged industry in China.
- Designing an appropriate company registration structure in China.
- Setting up a WFOE (Wholly Foreign-Owned Enterprise) in encouraged sectors.
- Compliance review of existing operations and potential re-structuring.
If you need tailored advice on how your project fits into the 2022 Encouraged Catalogue, you can contact our team for a dedicated consultation.
8. Download English reference (PDF)
You can download a partial English reference PDF of the Catalogue here and embed it in your page as a supporting document:
Download English reference PDF
Note: The regulation is translated by FDIChina for reference only. There may be different interpretations of the Chinese version.