In China, foreign investment in industries is mainly subject to regulations such as the Special Administrative Measures for Foreign Investment Access (Negative List) (2024 Edition). In principle, there are no special restrictions on foreign investment in industries outside the negative list, and foreign investors are allowed to invest in wholly or controlling stakes.
Edited by Rocke (Jianping Qi) May 18, 2025
In China, foreign investment in industries is mainly subject to regulations such as the Special Administrative Measures for Foreign Investment Access (Negative List) (2024 Edition). In principle, there are no special restrictions on foreign investment in industries outside the negative list, and foreign investors are allowed to invest in wholly or controlling stakes. The following are some of the main industry categories in which foreign investors can invest without restrictions (based on existing policies and areas outside the negative list):
• Manufacturing:
• Except for areas that are clearly restricted in the negative list (such as rare earths, tobacco, etc.), most manufacturing industries are open to foreign investors. For example, industries such as electronic products, machinery and equipment, textiles, and food processing are generally unrestricted.
• The 2022 version of the Catalogue of Industries Encouraged for Foreign Investment further encourages foreign investment in high-end manufacturing, green manufacturing, etc.
• Modern service industry:
• Including information technology services, software development, e-commerce, logistics, consulting services, etc. These areas are generally open to foreign investment and encourage innovative services.
• Financial services:
Financial services, such as banking, insurance, and securities, have gradually relaxed restrictions in recent years, and some areas allow foreign investors to hold controlling or wholly owned stakes.
• Technology and R&D:
• High-tech fields such as artificial intelligence, big data, cloud computing, and biotechnology are encouraged, and foreign investors can freely invest and set up R&D centers.
• The Catalogue of Industries Encouraged for Foreign Investment (2022 Edition) explicitly supports investment in science and technology R&D.
• New Energy and Environmental Protection:
• Industries such as wind power, solar energy, electric vehicle batteries, and energy-saving and environmental protection technologies are highly open to foreign investment, and policies provide incentives such as tax incentives.
• Agriculture and Food:
• Except for restricted areas such as genetically modified seeds, there are usually no special restrictions on agricultural production, agricultural product processing, and food manufacturing.
• Real Estate and Infrastructure:
• Commercial real estate development and urban infrastructure construction (such as non-sensitive areas) are open to foreign investment, but must comply with local land use policies.
• Education and Medical Care (Some Fields):
• Non-academic education, vocational education, and some medical services (such as high-end medical institutions) are open to foreign investment, but academic education and certain medical fields are still subject to certain restrictions.
Notes
• Negative list restrictions: According to the Special Administrative Measures for Foreign Investment Access (Negative List) (2024 Edition), some industries still restrict or prohibit foreign investment, such as telecommunications (basic telecommunications services), press and publishing, culture and entertainment (such as radio and television), military industry, rare earth mining, etc.
• Encouraged catalog: The 2022 edition of the Catalogue of Industries Encouraged for Foreign Investment lists a number of priority encouraged industries, and foreign investors can enjoy policy support for investment in these areas.
• Local policies: Different regions may have additional preferential policies or restrictions. For example, Guangdong, Hainan and other places have more support for foreign investment in modern service industries.
• Latest policy developments: The "20 Measures to Stabilize Foreign Investment" issued in February 2025 further expanded opening up and emphasized the facilitation of foreign investment access in manufacturing and modern service industries.
Summary:
Except for industries that are explicitly restricted or prohibited in the negative list, foreign investors can invest without restrictions in multiple fields such as manufacturing, modern service industries, scientific and technological research and development, new energy, agriculture, and real estate. Before making a specific investment, it is recommended to check the latest version of the "Special Management Measures for Foreign Investment Access (Negative List)" and the "Catalogue of Industries Encouraged for Foreign Investment", and consult professional legal service companies, such as Hainan Themis International Intellectual Property Consulting Service Co., Ltd. and other local companies. They are familiar with local conditions and have first-hand local information. They have a service team composed of law professors, professional lawyers, and accountants. They can provide more detailed analysis of a certain industry or the latest policy interpretation, and provide professional, standardized and effective guidance for foreign investment in China.