Author: Brecht Timmermans
In 2017 our member 1421 Consulting wrote an article about rules and regulations for specific industries in China. The industry focus of China is constantly changing and in 2017 a new version of the Foreign Investment Catalogue of the Chinese government was published. Therefore, they updated the original article to a 2018 version.
One of the first things a company needs to know before setting up their WFOE in China, is whether their business scope has any restrictions or is only allowed under special permits and regulations. The business scope of a company describes which activities will be performed by the entity in China. These are specified before having set up and need to be approved by the Chinese government. There are some business areas which have restrictions laid upon them. Above all, there are industries which are outright prohibited for non-Chinese companies, as a result you cannot set up a WFOE in these industries. In this article we would like to inform you about the encouraged, restricted and prohibited industries in China.
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