Statement on the New Catalogue for the Guidance of Foreign Investment Industries Go back »

2008-01-02 | All chapters

Statement on the new Catalogue for the Guidance of Foreign Investment Industries
2nd January 2008

The National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOFCOM) jointly issued the new Catalogue for the Guidance of Foreign Investment Industries on 7th November 2007. In light of the recent attention concerning the European Chamber and its members’ comment on this new Catalogue, hereby the Chamber would like to take this opportunity to express its opinion.

The European Union Chamber of Commerce in China recognizes and welcomes many of the goals set forth in China’s new Catalogue for the Guidance of Foreign Investment Industries, which we understand are aimed at reducing overheating of certain sectors of the economy, reducing negative impacts on the environment, promoting hi-tech industry, and achieving balanced trade with the rest of the world.

However, the European Chamber questions the need for such an extensive investment catalogue, which excludes foreign companies from investing in certain categories, rather than subjecting them to the same rules as domestic companies.

Certain changes in the 2007 catalogue will have a negative impact on specific projects and sectors, such as non-renewable mineral resources and some heavy industries. The European Chamber urges that a grandfathering clause should be considered, as this will add stability and predictability, ensuring that the terms upon which original investments were made are respected.

We are also concerned some of the prohibitions of the catalogue may produce unintended knock-on effects, as some of the targeted industries and sub-sectors are part of a greater supply chain process. Other concerns include how changes in the Catalogue for the Guidance of Foreign Investment Industries will indirectly affect existing investments and other Chinese Government policies. Therefore, Chamber member companies would welcome further clarification on how this guide will be interpreted by individual ministries and what recourse they may have. As always, the opportunity to comment on proposed policies ahead of promulgation is highly valued by companies.

Finally, Europe is a leader in environmentally friendly technologies and best practice. The European Chamber believes that protection of the environment is best achieved by addressing industry as a whole, through on-going efforts to create a better regulated and enforced environmental framework. Ultimately, China’s environmental goals are best served by those who can offer the best technologies based on China’s industrial requirements, regardless of nationality. 

To view the official versions of this Catalogue, please click here: Chinese, English.
To download this statement, please click here.

For further information, please contact:
Grace Yao, Press Officer of the European Chamber
Phone: +86 10 6462 2066 – 30; E-mail: gyao@euccc.com.cn