• About
  • Archive
  • Contact
  • Home 1
  • Submit a Story
  • Submit a Story
  • USCBC Podcasts
China Business Review
  • Operations
    Multinational Supply Chains in a Post-Pandemic China

    Multinational Supply Chains in a Post-Pandemic China

    Managing Risk in the “New Era”

    Managing Risk in the “New Era”

    Design Patents vs. Trade Dress: Protecting IP in China

    Design Patents vs. Trade Dress: Protecting IP in China

    As China Emerges from COVID-19, US Companies Invest to Compete

    As China Emerges from COVID-19, US Companies Invest to Compete

    Inside the Mad Rush for Masks – Anatomy of a 10 Million Mask Order

    Inside the Mad Rush for Masks – Anatomy of a 10 Million Mask Order

    Addressing Risk in the Era of US-China “Great Power” Competition

    Addressing Risk in the Era of US-China “Great Power” Competition

  • Politics
    Hong Kong’s National Security Law, Five Months In

    Hong Kong’s National Security Law, Five Months In

    China Implements its Long-Awaited Unreliable Entities List Mechanism

    China Implements its Long-Awaited Unreliable Entities List Mechanism

    Competing WTO Reform Agendas and the Contest for the Next Director-General

    Competing WTO Reform Agendas and the Contest for the Next Director-General

    China Eyes Further Northeast Asian Economic Integration in RCEP

    China Eyes Further Northeast Asian Economic Integration in RCEP

    COVID-19 Could Doom or Deliver US-China Commercial Relations

    COVID-19 Could Doom or Deliver US-China Commercial Relations

    A Game of Chicken

    A Game of Chicken

  • Tech
    Can China’s Beleaguered Gaming Industry Overcome the New Wave of Restrictions?

    Can China’s Beleaguered Gaming Industry Overcome the New Wave of Restrictions?

    Semiconductor Self-Sufficiency: MIIT’s Ambitions for 2021 and Beyond

    Semiconductor Self-Sufficiency: MIIT’s Ambitions for 2021 and Beyond

    The Growing Intersection of Digital Health and Data Processing in China

    The Growing Intersection of Digital Health and Data Processing in China

    Export Controls on Emerging and Foundational Technologies: A Null Set?

    Export Controls on Emerging and Foundational Technologies: A Null Set?

    How Companies Are Reacting to China’s New Data Security Scheme

    How Companies Are Reacting to China’s New Data Security Scheme

    China’s Participation in International Standards Setting: Benefits and Concerns for US Industry

    China’s Participation in International Standards Setting: Benefits and Concerns for US Industry

    Trending Tags

    • Intellectual Property
    • innovation
    • cybersecurity
    • ecommerce
    • tech
  • Society
    Can China’s Beleaguered Gaming Industry Overcome the New Wave of Restrictions?

    Can China’s Beleaguered Gaming Industry Overcome the New Wave of Restrictions?

    China Cracks Down on Education Industry in Effort to Increase Birthrate

    China Cracks Down on Education Industry in Effort to Increase Birthrate

    The Extraordinary Rise of China’s Pet Industry

    The Extraordinary Rise of China’s Pet Industry

    COVID-19 Could Doom or Deliver US-China Commercial Relations

    COVID-19 Could Doom or Deliver US-China Commercial Relations

    The Year in Social Credit: Where is Corporate Social Credit Going in 2020 and Beyond?

    The Year in Social Credit: Where is Corporate Social Credit Going in 2020 and Beyond?

    Open Government Developments in China: Implications for US Businesses

  • Media

    Gallery: Craig Allen’s Trip to China

    USCBC 45th Annual Membership Meeting

    USCBC 45th Anniversary DC Open House

    USCBC President’s China Visit

    USCBC Hosts Business Roundtable with Zhejiang Party Secretary Che Jun

    USCBC hosts Comprehensive Economic Dialogue (CED) Luncheon

  • Podcasts
No Result
View All Result
  • Operations
    Multinational Supply Chains in a Post-Pandemic China

    Multinational Supply Chains in a Post-Pandemic China

    Managing Risk in the “New Era”

    Managing Risk in the “New Era”

    Design Patents vs. Trade Dress: Protecting IP in China

    Design Patents vs. Trade Dress: Protecting IP in China

    As China Emerges from COVID-19, US Companies Invest to Compete

    As China Emerges from COVID-19, US Companies Invest to Compete

    Inside the Mad Rush for Masks – Anatomy of a 10 Million Mask Order

    Inside the Mad Rush for Masks – Anatomy of a 10 Million Mask Order

    Addressing Risk in the Era of US-China “Great Power” Competition

    Addressing Risk in the Era of US-China “Great Power” Competition

  • Politics
    Hong Kong’s National Security Law, Five Months In

    Hong Kong’s National Security Law, Five Months In

    China Implements its Long-Awaited Unreliable Entities List Mechanism

    China Implements its Long-Awaited Unreliable Entities List Mechanism

    Competing WTO Reform Agendas and the Contest for the Next Director-General

    Competing WTO Reform Agendas and the Contest for the Next Director-General

    China Eyes Further Northeast Asian Economic Integration in RCEP

    China Eyes Further Northeast Asian Economic Integration in RCEP

    COVID-19 Could Doom or Deliver US-China Commercial Relations

    COVID-19 Could Doom or Deliver US-China Commercial Relations

    A Game of Chicken

    A Game of Chicken

  • Tech
    Can China’s Beleaguered Gaming Industry Overcome the New Wave of Restrictions?

    Can China’s Beleaguered Gaming Industry Overcome the New Wave of Restrictions?

    Semiconductor Self-Sufficiency: MIIT’s Ambitions for 2021 and Beyond

    Semiconductor Self-Sufficiency: MIIT’s Ambitions for 2021 and Beyond

    The Growing Intersection of Digital Health and Data Processing in China

    The Growing Intersection of Digital Health and Data Processing in China

    Export Controls on Emerging and Foundational Technologies: A Null Set?

    Export Controls on Emerging and Foundational Technologies: A Null Set?

    How Companies Are Reacting to China’s New Data Security Scheme

    How Companies Are Reacting to China’s New Data Security Scheme

    China’s Participation in International Standards Setting: Benefits and Concerns for US Industry

    China’s Participation in International Standards Setting: Benefits and Concerns for US Industry

    Trending Tags

    • Intellectual Property
    • innovation
    • cybersecurity
    • ecommerce
    • tech
  • Society
    Can China’s Beleaguered Gaming Industry Overcome the New Wave of Restrictions?

    Can China’s Beleaguered Gaming Industry Overcome the New Wave of Restrictions?

    China Cracks Down on Education Industry in Effort to Increase Birthrate

    China Cracks Down on Education Industry in Effort to Increase Birthrate

    The Extraordinary Rise of China’s Pet Industry

    The Extraordinary Rise of China’s Pet Industry

    COVID-19 Could Doom or Deliver US-China Commercial Relations

    COVID-19 Could Doom or Deliver US-China Commercial Relations

    The Year in Social Credit: Where is Corporate Social Credit Going in 2020 and Beyond?

    The Year in Social Credit: Where is Corporate Social Credit Going in 2020 and Beyond?

    Open Government Developments in China: Implications for US Businesses

  • Media

    Gallery: Craig Allen’s Trip to China

    USCBC 45th Annual Membership Meeting

    USCBC 45th Anniversary DC Open House

    USCBC President’s China Visit

    USCBC Hosts Business Roundtable with Zhejiang Party Secretary Che Jun

    USCBC hosts Comprehensive Economic Dialogue (CED) Luncheon

  • Podcasts
No Result
View All Result
China Business Review
No Result
View All Result
Home Policy & Regulations

Government Provides Clues into China’s Foreign Investment Plans for Strategic Industries

USCBC by USCBC
January 1, 2012
Share on FacebookShare on TwitterLinkedin

by Kyle Sullivan

PRC leaders recently shed light on how China intends to incorporate foreign investment into its goals for developing strategic emerging industries. A mix of seven high-tech sectors, the strategic emerging industries (SEIs) will account for roughly eight percent of China’s total gross domestic product by 2015 and 15 percent by 2020, according to government targets.

Until recently, PRC regulators had been largely silent about the role foreign investment would play in the strategic emerging industries, prompting questions about how willing the government would be to permit foreign participation in China’s next round of industrial development. Though the latest opinions do not address key issues such as the types of ownership structures foreign companies will be permitted to establish, existing policy documents—namely the Catalogue Guiding Foreign Investment in Industry—already restrict foreign ownership in new-energy vehicle, renewable energy, and other industry sectors that fall within the SEIs.

Released by the PRC National Development and Reform Commission (NDRC), the Ministry of Commerce (MOFCOM), and eight other government ministries and offices, the Guiding Opinions on Promoting the International Development of the Strategic Emerging Industries provide a broad framework for policymakers to formulate specific policies that aim to advance the development of SEIs. The opinions primarily discuss China’s goal to turn its domestic companies into global competitors, using tools such as partnerships between foreign and domestic entities for research and development (R&D) and imports of essential products. Indeed, many of the themes discussed in the opinions—such as advocating joint cooperation between domestic and foreign companies and importing key equipment that China lacks—are not new and are mentioned in other policy documents.

Foreign investment in emerging industries

The opinions selectively promote foreign investment in three sectors: information technology, advanced equipment manufacturing, and new materials.

  • Information technology The opinions encourage foreign investors to establish 3G R&D centers and high-performance integrated circuit enterprises.
  • Advanced equipment manufacturing Companies are encouraged to develop platforms for joint investment and cooperation between domestic and foreign companies. Domestic and foreign companies are also encouraged to cooperate in developing seaborne engineering construction equipment.
  • New materials The opinions also encourage foreign producers of value-added new materials products to establish and invest in factories.
  • The opinions do not offer guidance on how foreign investment will be utilized in the remaining four industries—biology, environmental protection and energy conservation, new energy, and new-energy vehicles.

Programs in high-tech industries

The opinions also call on regulators to update the Annual Guidelines for the Priority Programs of High-Tech Industries—a list of 137 high-tech industrial programs, products, and projects that the central government encourages for development. The products span 10 industries, including advanced energy, advanced manufacturing, biotech, modern agriculture, and new materials. NDRC, MOFCOM, the Ministry of Science and Technology, and two other PRC government agencies released the 2011 annual guidelines on October 20. Though the annual guidelines did not include policy guidance, previously released documents—such as those that direct how funds should be used for industrial upgrading—may also apply to products included in the new list.

Kyle Sullivan ([email protected]) is a manager of Business Advisory Services for the US-China Business Council (USCBC) in Shanghai. This article is adapted from a report that first appeared in China Market Intelligence, USCBC’s members-only newsletter.

Tags: ChinaEconomic DevelopmentEconomic TrendsEmerging IndustriesForeign InvestmentInformation TechnologyInvestments into ChinaManufacturingMaterialsMOFCONational Development and Reform Commission
USCBC

USCBC

Next Post

Transferring China Compulsory Certification Marks

Recommended.

Reflections on the Phase One Agreement

January 20, 2022

Can China’s Beleaguered Gaming Industry Overcome the New Wave of Restrictions?

November 29, 2021

From Reshoring to Rightshoring: Dr. Sara Hsu on the Future of US-China Supply Chains

August 4, 2021

China Cracks Down on Education Industry in Effort to Increase Birthrate

July 22, 2021

Latest Podcasts.

A benchmark on how companies are coping with Omicron

May 18, 2022

How companies are approaching China’s changing cyber landscape

May 12, 2022

What does the future of US-China decoupling look like?

May 5, 2022

A look at the latest US exports to China

April 8, 2022
China Business Review

China Business Review is the official magazine of the US-China Business Council, a nonprofit and nonpartisan trade association that represents more than 200 American companies doing business in China.

  • How to contribute to China Business Review

Categories

  • Bilateral Relations
  • Business Etiquette
  • CBR Spotlight
  • China Deals
  • Corruption
  • Cybersecurity
  • Ecommerce
  • Environment
  • Finance
  • Galleries
  • Getting Started
  • HR & Staffing
  • Infographics
  • Innovation
  • Intellectual Property
  • Management
  • Media
  • Operations
  • Opinion
  • Policy & Regulations
  • Politics
  • PR & Marketing
  • Rural Issues
  • Safety
  • Social Policy
  • Society
  • Standards + Licensing
  • Sustainability
  • Tax
  • Tech
  • Top Story
  • Trade
  • Uncategorized
  • US-China Business Council
  • Videos

Tags

Agreements Agriculture Alibaba Best Practices Business Environment China China's Investments Abroad China Market Intelligence Chinese Consumers Chinese Investment Commentary Consumer Trends E-Commerce Economic Trends Energy Environment Events Food Foreign Investment Going Global Healthcare Reform Human Resources Infrastructure Internet Interview Investment Investments into China IPO Joint Venture Labor Legal Analysis M&A Manufacturing Media National People's Congress Q&A Strategic and Economic Dialogue Supply Chains Technology Trade Transparency US-China Relations USCBC US Exports to China Xi Jinping

Join our Mailing List

Sign up for the US-China Business Council's newsletters to stay ahead of the game with roundups, analysis, and commentary.

Sign Up

Follow Us

  • About
  • USCBC
  • Submit a Story
  • Archive

© 2021 China Business Review

No Result
View All Result
  • Operations
  • Politics
  • Tech
  • Society
  • Media
  • Podcasts

© 2021 China Business Review