Shou Xiaoli:

Thank you, Mr. Wu, for your opening remarks. We will now move to the Q&A session. Please identify the media outlet you represent before raising your questions.

CCTV:

We noticed that both the Government Work Report and the action plan call for the expansion of the Catalogue of Encouraged Industries for Foreign Investment . What does the NDRC plan to do in this regard? Also, in what areas will foreign investment be encouraged in the future? Thank you.

Wu Hao:

Thank you for your questions. The Catalogue of Encouraged Industries for Foreign Investment is an investment promotion policy stipulated by the Foreign Investment Law and its supporting rules and regulations , encouraging and guiding foreign investors to invest in certain industries, areas and regions. The current 2022 edition of the Catalogue is now under revision. For more details, I will hand over to my colleague, Mr. Hua Zhong, from the Department of Foreign Capital and Overseas Investment.  

Hua Zhong:

Thank you, Mr. Wu, and thanks for the questions from CCTV. Here is more information on what's underway with expanding the Catalogue of Encouraged Industries for Foreign Investment.

The 2022 edition of the Catalogue contains a total of 1,474 items, including 519 items applicable nationwide and 955 items that target priority industries in central and western regions. Currently, eligible foreign investments in encouraged categories can enjoy three preferential policies in accordance with the law: (1) equipment imported for self-use in foreign investment projects within the total investment amount shall be exempt from customs duties (except for those listed in the Catalogue of Imported Major Technical Equipment and Products not Eligible for Tax Exemption and the Catalogue of Products Imported for Foreign Investment Projects and Not Eligible for Tax Exemption); (2) a reduced corporate income tax rate of 15% is applicable for qualified enterprises in encouraged industries in the western region and Hainan; and (3) priority access to land supply is granted to encouraged industrial projects with intensive land use, and the base price for such land may be set at no less than 70% of the national lowest price for industrial land of the same grade as the land in question.

According to the requirements of this year's Government Work Report, the NDRC, in collaboration with relevant departments, has initiated the revision of the Catalogue. During the process, we will engage in extensive consultations through field research, discussion forums and other forms with foreign chambers of commerce and foreign-invested enterprises to gather a wide range of opinions and demands. Our preliminary considerations include: first, the revision of the national catalogue will continue to prioritize foreign investment in the manufacturing sector while also promoting the integrated development of the service and manufacturing sectors. We will increase support for fields such as advanced manufacturing, modern services, advanced and new technologies, and energy-saving and environmental protection. We welcome multinational companies to continue expanding their investments in these areas within China and deepen cooperation with upstream and downstream enterprises for mutually beneficial and win-win development. Second, the revision of the catalogue for central and western regions will fully leverage the local resources and industrial conditions, appropriately increasing support for basic manufacturing, applicable technologies and consumer welfare projects. With rich resources, a vast market and sufficient human resources, China's central, western and northeastern regions enjoy increasingly better business environments. We invite global multinational companies to focus more on these areas and expand their operations there. Thank you!