(Yicai) Dec. 25 -- China has updated its Catalog of Encouraged Industries for Foreign Investment to steer more overseas capital into advanced manufacturing and modern services while also extending regional support.

One major change in the 2025 edition, which will take effect on Feb. 1 next year, is a push to attract foreign investment in advanced manufacturing. The catalog has added 205 new areas such as the development and production of nucleic acid-based drugs, zero-magnetic medical equipment, smart testing equipment and instruments as well as key robot components. It has also amended 303 existing entries.

The catalog, which was recently released by the National Development and Reform Commission and the Ministry of Commerce, encourages foreign investment in modern service industries such as operating new-material technology platforms, modern high-end shipping services and virtual power plants.

On top of that, it expands support for consumer services such as pet hospitals and grooming, sports tourism, travel agencies, camping industry consulting, homestay design, and "Internet + healthcare services."

Companies in sectors listed in the catalog can enjoy perks such as exemption from customs duties, a reduced corporate income tax rate of 15 percent and tax credits if domestic enterprises reinvest profits into catalog-listed industries, provided certain conditions are met, an official from the Ministry of Commerce said.

The catalog also encourages foreign investment in central and western China, the northeast and southern Hainan province, tailoring the incentives to local resources and industrial development. For example, northeastern Liaoning province has added cruise tourism services, while Heilongjiang province has added the development and manufacturing of ice-and-snow equipment.

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

Editor: Kim Taylor