China releases the 2025 Encouraged Catalogue for Foreign Investment
On December 24, 2025, China released the Catalogue of Encouraged Industries for Foreign Investment 2025, effective February 1, 2026, updating the list of sectors and activities eligible for preferential treatment, streamlined procedures, and operational advantages.
Compared to the previous version, the new Catalogue shows a broader scope – with 200+ new items and 300+ revisions – and a more targeted focus on:
- Advanced manufacturing, with items from terminal products and components to raw materials;
- Green technologies and modern services, such as lifestyle, consumer-facing, and digitalized service industries;
- Additional incentives for central, western, northeastern regions (underdeveloped areas), and Hainan.
Four preferential policies:
- Customs duty exemptions for imported self-use equipment;
- Preferential industrial land access – reductions down to 70% and more flexibility;
- Reduced CIT (15%) for eligible projects located in western China and Hainan;
- Tax credits for profits reinvestment into National Catalogue’s projects.
This update confirms China’s intention to attract foreign investment, especially when aligned with its high-quality growth, innovation, and regional development goals, offering a key instrument for recalibrating China and Far East investment strategies.
Pdf Source (Chinese language)
https://www.ndrc.gov.cn/xxgk/zcfb/fzggwl/202512/P020251224301773999332.pdf
