(Yicai) Dec. 25 -- China has updated one of its main tools for steering foreign investment into priority industries and regions now with the aim of directing more overseas capital into advanced manufacturing and modern services while also extending regional support.

A key update in this year’s Catalogue of Encouraged Industries for Foreign Investment, effective Feb. 1, is a stronger focus on attracting foreign capital into advanced manufacturing. The catalog adds 205 new areas, including the development and production of nucleic acid-based drugs, zero‑magnetic medical equipment, smart testing gear and instruments, and key robotic components, while revising 303 existing entries.

The catalog, recently released by the National Development and Reform Commission and the Ministry of Commerce, also expands the list of encouraged modern services, covering new materials technology platforms, high-end shipping, virtual power plants, as well as consumer services such as pet hospitals and grooming, sports tourism, travel agency services, camping industry consultancy, homestay design, and “Internet + healthcare services.”

Provided certain conditions are met, businesses in sectors listed in the new catalog can enjoy incentives such as exemption from customs duties, a lower corporate tax rate of 15 percent, and tax credits if domestic enterprises reinvest profits into catalog-listed industries, a commerce ministry official said.

Moreover, the catalog encourages foreign investment in central and western China, the northeast, and southern Hainan province, tailoring the perks to local resources and industrial development. For example, northeastern Liaoning province has added cruise tourism services, while Heilongjiang province has affixed the development and production of ice-and-snow gear.

An NDRC spokesperson said that the commission will work with other government departments to create a first-class business environment so that more multinational companies can share in China’s growth opportunities.

Editor: Kim Taylor