China’s mining industry will be further open to the forgein companies

The National Development and Reform Commission and the Ministry of Commerce have jointly issued the Catalog of Foreign Investment Industries (Revised 2017) (hereinafter referred to as the “Catalog”). Compared with the “Foreign Investment Industry Guidance Catalog (Revised 2015)”, it has been adjusted in terms of improving the level of service, manufacturing and mining. Among them, the mining industry focused on the abolition of unconventional oil and gas, precious metals, lithium and other areas of access restrictions.

“Catalog” to further reduce the restrictive measures of foreign investment, retain 63 (including restrictions on the entry 35, prohibit the entry 28), than the 2015 version of the “Catalog” 93 restrictive measures (including the incentive to have more than the requirements of the entry 19 Article 38 of the Restricted Article, Article 36 of the Prohibited Entries) has been reduced by 30. Mining industry, the abolition of the oil shale, oil sands, shale gas and other unconventional oil and gas exploration and development, precious metals (gold, silver, platinum group) exploration, mining, lithium mining, mineral processing, molybdenum, tin ), Antimony (including antimony oxide and antimony sulfide) and other rare metals smelting and other areas of foreign capital restrictions.

Another major change in the “Catalog” amendment was the adjustment of the structure and the explicit management of foreign investment access (negative list of foreign investment access). In accordance with the requirements of the reform of the negative list model, the 2017 edition of the “Catalog” will be part of the original encouragement of the shares than the required items, as well as restrictions, prohibited class integration as a negative list of foreign investment access, as a foreign investment before the entry of national treatment Negative inventory management model of the basic basis. In addition to negative lists, in principle, no restrictive measures for foreign capital entry, foreign investment projects and enterprises to implement the record management.

“Catalog” is an important industrial policy to guide foreign investment in China. Encourage foreign investment projects can enjoy preferential policies such as duty-free of imported equipment. Preferential supply of land to the encouraged foreign investment industrial projects for intensive land use can be carried out at a rate of not less than 70% of the national minimum price for industrial land transfer in determining the land transfer reserve price. Encouraged projects in the western region can enjoy preferential policies for corporate income tax in the western development.

“Catalog” will be released after about 30 days of the transition period, July 28, 2017 from the official implementation. After the approval or filing of foreign investment projects in accordance with the 2017 edition of the “Catalog” implementation, before the approval or filing of foreign investment projects in accordance with the 2015 edition of “directory” implementation