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PRC NDRC plans to largely reduce the restrictions on foreign investment industries

6 November 2014

On 4 November 2014, China's National Development and Reform Commission (NDRC) issued the draft Catalogue for Guidance of Foreign Investment Industries (published for comments).

According to the newly issued draft Catalogue, the restrictions on foreign investment industries will be largely reduced. Compared with the existing Catalogue promulgated in 2011, the draft Catalogue has reduced the number of clauses that list restricted industries from the current 79 to 35, and reduced the number of clauses that list the prohibited industries from 40 to 36. In addition, in respect of some industries, the draft Catalogue has cancelled requirements that the Chinese parties must hold majority shares or foreign investment must take a form of equity joint venture or contractual joint venture.

Any legal information contained in this newsletter is general in nature and laws and regulations are changing from time to time and compliance will always depend upon the particular circumstances. We have not attempted to give exhaustive descriptions of law or to give a legal opinion on specific legal issues. You should not rely on this newsletter as a legal advice for any particular purpose.




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