What is the Catalogue for the Guidance of Foreign Investment?
The Catalogue for the Guidance of Foreign Investment (the “Catalogue”), the latest of which was released in 2007, is simply that- a catalogue or guide published by the Chinese government which divides the various business industries and sectors and categorizes them into, one of either four designations: a) Prohibited: industries which harm national interest, harm the environment or human health, or which are in sensitive industries related to national security or are politically sensitive; b) Restricted: industries which are technologically-backward, are not friendly to the environment, or are in sensitive areas to China’s development; c) Permitted: industries which are not mentioned in the Catalogue fall in this category; and d) Encouraged: industries which promote development of agriculture, use high-technology, promote environmental protection, promote export, and which develop lesser-developed regions in China. Obviously, those industries in the Prohibited area are not open to fore
