Foreign Investment Catalogues and Investment Environment in China

Guidance Catalogue and Central and WesternCatalogue are the basic blueprints for foreign invest-ment in China. Sectors falling within different cat-egories have different investment polities for foreign-invested enterprises. There are three basic categories inthe Guidance Catalogue: \"encouraged\"， \"restricted\"，and \"prohibited\". Industries not listed in GuidanceCatalogue are deemed to be \"permitted\"， all indus-tries listed in Central， and Western Catalogue shallbe deemed as encouraged categories. In addition， theaforementioned two catalogues have different ap-plication scope， Guidance Catalogue is applicable tofull China， Central and Western Catalogue is onlyapplicable to 21 provinces， autonomous regions andmunidpalities located in central and western China.