On March 10, 2015 the National Development and Reform Commission (NDRC) and Ministry of Commerce (MOFCOM) of the People’s Republic of China (PRC) jointly released a new Foreign Investment Guidance Catalogue, which will come into force on April 1, 2015. Other than some clarifying changes, the 2015 Catalogue is substantially the same as the draft released earlier for public comments.

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The 2015 Catalogue retains the framework of classifying Chinese industries into “encouraged,” “restricted” and “prohibited” categories (industries not listed are “permitted”); however, it substantially reduces the restrictions on foreign investment currently in place. The 2015 Catalogue lifts restrictions on foreign investment in dozens of service and general manufacture industries and relaxes Chinese ownership requirements. Although foreign investors still have to operate in some of these industries through Sino-foreign joint ventures, control by the Chinese partners will no longer be required. In addition, the 2015 Catalogue permits establishment of wholly foreign-owned enterprises (WFOEs) in a number of industries.