China Lists Guidelines for Foreign Investment

China no longer wants foreign-funded automobile factories or polysilicon plants, but would welcome overseas investment in hospitals and financial leasing firms, according to updated inward investment guidelines, Reuters wrote Thursday. The 29-page list, published on the website of China’s economic planning agency, outlines sectors where foreign investors will be encouraged, restricted or completely banned, Reuters wrote.

(Reuters) – China no longer wants foreign-funded automobile factories or polysilicon plants, but would welcome overseas investment in hospitals and financial leasing firms, according to updated inward investment guidelines published on Thursday.

The 29-page list — published on the website of China’s economic planning agency, the National Development and Reform Commission (www.ndrc.gov.cn) — outlines sectors where foreign investors will be encouraged, restricted or completely banned.

The guidelines, effective from Jan. 30 2012, are the basis for a range of policies regarding foreign investors in China, from project approval to tax treatment and other items.

“The focus is to optimize the foreign investment structure, push forward technology innovation and industrial upgrading,” the NDRC said in a statement.

Investments that bring new technology and know-how to China, as well as “green” businesses in areas like battery recycling, will be particularly welcome, NDRC added.

Foreign direct investment (FDI) inflows have been a key driver of China’s economic growth in the last three decades.

China drew $103.8 billion in FDI in the first 11 months of 2011, up 13.2 percent from the same period in 2010. (Reporting by Zhou Xin and Kevin Yao; Editing by Nick Edwards)