China’s National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOFCOM) have officially released the Catalogue of Encouraged Industries for Foreign Investment (2025 Edition ) (hereafter the “2025 FI Encouraged Catalogue” or the “2025 Catalogue”). Taking effect on February 1, 2026, the updated Catalogue replaces the 2022 version and represents a renewed commitment to attracting global investment across advanced manufacturing, modern services, green development, and regional development priorities.
As one of China’s core policy tools for guiding foreign direct investment (FDI), the Catalogue outlines industries that benefit from preferential tax, land, and customs policies. The latest update is both broader in scope and more targeted in direction, signaling China’s firm intention to integrate foreign capital into its next phase of industrial upgrading and regional revitalization.
The 2025 Catalogue contains 1,679 entries, including:
Compared with the 2022 edition, this reflects:
The expansion is the result of wide consultation with foreign-invested enterprises (FIEs), business associations, sector experts, and local governments, ensuring the Catalogue aligns closely with global investor expectations and China’s industrial priorities.
China continues to emphasize manufacturing as the backbone of its economy. The updated Catalogue widens the range of encouraged manufacturing activities, from core technologies to high-value components, reflecting China’s push toward innovation-driven growth and resilient supply chains.
Newly encouraged industries include:
Collectively, these changes highlight China’s commitment to high-end, high-tech, and high-efficiency industrial development.
A notable shift in the 2025 Catalogue is its strong emphasis on modern services, especially those that support industrial upgrading and consumption upgrading.
Production-related service sectors newly included:
Service consumption sectors are now encouraged:
This broadened scope reflects China’s growing interest in welcoming foreign investment not only into manufacturing but into lifestyle, consumer-facing, and digitalized service industries.
The Regional Catalogue continues to play a major role in promoting balanced regional development. The 2025 edition introduces new entries tailored to local ecosystems, aiming to direct foreign investment toward inland and northern provinces with untapped potential.
Examples of new region-specific encouraged sectors include:
These adjustments reflect China’s strategy of using foreign investment to empower regional strengths and bridge development gaps.
FIEs operating in encouraged sectors may access four major preferential policies:
These measures lower operational costs and strengthen investment certainty.
Both NDRC and MOFCOM emphasize that the release of the Catalogue marks the beginning of a new phase of policy execution.
MOFCOM’s implementation agenda includes:
These steps aim to ensure foreign investors can fully utilize the benefits of the Catalogue while enjoying a transparent, predictable, and internationalized business environment.
The 2025 edition of the Encouraged Catalogue for Foreign Investment signals China’s continued commitment to high-level opening and international cooperation. With expanded industry coverage, clearer regional guidance, and strengthened policy incentives, the new Catalogue provides multinational companies with a roadmap to align their China strategies with the country’s long-term development priorities.
Our Business Advisory service helps companies navigate Asia’s complex business landscape from initial market entry to ongoing expansion. We advise on corporate structuring, company setup, due diligence, legal contracts, intellectual property, and M&A transactions. Clients benefit from both standalone projects and integrated support from our in-house tax, audit, HR, and technology teams. To arrange a consultation, please contact China@dezshira.com.
China Briefing is one of five regional Asia Briefing publications. It is supported by Dezan Shira & Associates , a pan-Asia, multi-disciplinary professional services firm that assists foreign investors throughout Asia, including through offices in Beijing , Tianjin , Dalian , Qingdao , Shanghai , Hangzhou , Ningbo , Suzhou , Guangzhou , Haikou , Zhongshan , Shenzhen , and Hong Kong in China. Dezan Shira & Associates also maintains offices or has alliance partners assisting foreign investors in Vietnam , Indonesia , Singapore , India , Malaysia , Mongolia , Dubai (UAE) , Japan , South Korea , Nepal , The Philippines , Sri Lanka , Thailand , Italy , Germany , Bangladesh , Australia , United States , and United Kingdom and Ireland .
For a complimentary subscription to China Briefing’s content products, please click here . For support with establishing a business in China or for assistance in analyzing and entering markets, please contact the firm at china@dezshira.com or visit our website at www.dezshira.com .
Meet the firm behind our content. Visit their website to see how their services can help your business succeed.
Our free webinars are packed full of useful information for doing business in China.
Subscribing grants you this, plus free access to our articles and magazines.
Get expert support for Asia market entry
Download our China Doing Business guide
Your trusted source for China business, regulatory and economy news, since 1999.
Not convinced? Click here to see our last week's issue.
Loading comments…