China's 11th five-year plan has brought about changes to China's foreign investment policy. These changes of policy are likely to result in various regulatory changes throughout 2007, including the re-issuance of China's Foreign Investment Industrial Guidance Catalogue.

In the meantime, the main policy changes are:

  • Going forward, China will focus more on the quality of foreign investment rather than quantity;
  • Labour-intensive investments will be discouraged in favour of high-technology investments; and
  • Environmentally friendly investments will be given greater priority.