Guideline welcomes foreign investment

China will encourage foreign companies to invest in more domestic sectors, according to a guideline released on Thursday.

In the first 11 months of this year, China attracted US$103.77 billion of foreign direct investment, up 13.15 percent from the previous year. [Photo/CNS]

According to?the new guideline jointly issued by the National Development and Reform Commission and the Ministry of Commerce, China will encourage more foreign investment in advanced manufacturing, the service industry and certain business concerned with energy conservation, advanced technology, renewable sources of energy, new materials and advanced-equipment manufacturing.

Meanwhile, the country will withdraw support for foreign capital in auto manufacturing because of the need of the healthy development of domestic auto making.

It will neither support foreign investment in the sectors of polycrystalline silicon?nor coal chemical due to concerns of overcapacity, according to the guideline.

The guideline, which will replace a previous version of the rules that was published in 2007, is expected to come into force on January 30.

In the first 11 months of this year, China attracted US$103.77 billion of foreign direct investment, up 13.15 percent from the previous year.

During the same period, the country approved the establishment of 25,086 foreign-invested companies, up 3.23 percent year on year.