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flag China updates investment rules to boost foreign inflows in high-tech, green sectors by 2026.

flag China has updated its 2025 Catalogue of Encouraged Industries for Foreign Investment, effective February 1, 2026, adding over 200 sectors and revising around 300 to prioritize advanced manufacturing, green technology, high-tech industries, and modern services. flag The policy, issued by the National Development and Reform Commission and the commerce ministry, offers incentives like tax breaks, tariff exemptions on imported equipment, and preferential land use to reverse a 7.5% drop in foreign direct investment through November 2025. flag It also expands support for central, western, northeastern China, and Hainan to boost investment in less developed regions and strengthen industrial supply chains.

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