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Box 2.1 Main changes in the 2019 National Negative List for foreign investments and the 2019 Encouraged Catalogue
Encouraged category-Activities added
Manufacturing
2. Equipment such as industrial robots, key components of new energy vehicles (NEVs), smart vehicles, etc.
Services
2. Artificial intelligence technology, clean production, carbon capture, and circular economy
3. Construction and management of ecological protection projects

Box 2.1 Main changes in the 2019 National Negative List for foreign investments and the 2019 Encouraged Catalogue
Prohibited category-Activities removed
Environment
Exploitation of wildlife resources originally produced in China and protected by the country

Box 2.2 Main changes in the 2020 National Negative List for foreign investments and the 2020 Encouraged Catalogue
Encouraged category- Activities added (National Catalogue)
Advanced manufacturing
4. Environmental protection – Construction and equipment manufacturing of receiving and disposing facilities for marine pollutants at ports, construction and equipment manufacturing of emergency facilities for hazardous chemicals and oil products at ports, etc.

2.51. Some of China's policies also reflect the country's efforts to phase out industries considered to be heavily polluting. These efforts are documented in the Catalogue for Guiding Industry Restructuring, which was last updated in October 2019, entered into force on 1 January 2020, and superseded the 2011 version. (...) Items to be phased out shall be prohibited from investment and shall be phased out within the prescribed time-limit. In principle, this provision applies to all types of enterprises in China.

2.55. Foreign-invested projects (FIPs) involving fixed assets investment are subject to the general filing system and limited approval system. (...) The approval standards are based on several core criteria, including laws and regulations; the development plan; market access conditions; and industrial, land, and environmental policies. The authorities indicated that FIP applications are generally approved as long as they have no negative impact on national security, the environment, or public interest (...).

2.68. As a response to the COVID‑19 pandemic, several relief measures were taken or announced for foreign investors. For example, all export tax rebates must be made in full without delay except for energy-intensive and polluting products. (...).

3.8. Importers are required to comply with the inspection and quarantine requirements of Customs, as stipulated by law, regulations, and the Catalogue of Import and Export Commodities Subject to Compulsory Inspection. The Catalogue lists commodities as required to protect human, animal or plant health, and the environment, (...). The list was amended twice (in 2019 and 2020) to remove import supervision inspection requirements on 390 tariff lines (...).

3.15. In 2019, China notified to the WTO its laws and regulations putting the Agreement on Preshipment Inspection into force. (...) Measures for the Supervision and Administration of Inspection and Quarantine of Imported Solid Waste Which Can Be Used as Raw Materials. The authorities indicate that preshipment inspection (PSI) requirements also used to be required for imports of solid waste before such imports were prohibited on 1 January 2021.

3.39. As notified to the WTO, preferential VAT policies were in place during the period 2017-18 for: (...) (iii) integrated utilization of resources; (...) (v) photovoltaic generated electricity; (vi) hydropower electricity; (...).

3.40. In 2019, the consumption (excise) tax (CT) accounted for 8% of total tax revenue (up from 7.1% in 2017). The CT continues to be levied on products that are considered to be harmful to human health, social order, and the environment; luxury goods; high-energy consumption and high end products; and non-renewable and non-replaceable petroleum products. (...).