China Issues Guidelines To Attract Foreign Investment

On 17 January 2017, the State Council released the Circular on Several Measures on Expanding the Opening to and Active Use of Foreign Investment (国务院关于扩大对外开放积极利用外资若干措施的通知)(Guidelines). The Guidelines set out the blueprint for China's policies on attracting foreign investment in the upcoming years.

Background

According to the latest statistics from the Ministry of Commerce (MOFCOM), foreign direct investment in China recorded a growth of 4.1 percent in 2016. Although the investment amount has continued to increase each year, the growth rate has declined. The rising costs of production in China amidst the global economic slowdown have driven many investors from China to other emerging markets. Against this background, the Guidelines are generally seen as the central government's revived attempt to attract foreign investment by calling on various ministries to take concrete action to implement the principles set out in the Guidelines.