China's National Development and Reform Commission said on Thursday that the newly revised Catalog of Industries for Guiding Foreign Investment offers clearer policies for foreign investors.
The new catalog has updated the list of industries in which foreign investment is encouraged, restricted or prohibited. Investments in technological innovation, services and energy-saving sectors are encouraged. The catalog listed futures companies and electricity networks as opening sectors for the first time.In response to the accumulating trade surplus and foreign reserves, the new policy will no longer encourage investment in projects solely for export. China will also offer preferential tax policies for investors who fund encouraged projects.
China will allow foreign companies to invest in the construction and operation of the country's power grid for the first time, the country's top economic planner said.
The National Development and Reform Commission (NDRC) said power grids have now been listed on the 'new guidance catalogue' as acceptable targets for foreign investment.
China now only has two state-owned grid operators - China State Grid and China Southern Power Grid - after the reform of China's electricity sector in 2002, which led to the separation of the industry into independent power producers and grid companies beginning in 2002....MORE