According to China's Provisions on Guiding Foreign
Investment Orientation，projects seeking foreign funds are classified into four categories: encouraged, permitted, restricted, and prohibited. For foreign funded projects classified as "encouraged", self used manufacturing equipment is exempt from import duties and accompanying import value added taxes. "Permitted" foreign funded projects whose products are meant solely for export are considered "encouraged" investment projects. With the approval of the government of the appropriate province’s, autonomous region’s, directly governed municipalities’, or national authorities, "restricted" projects that will export at least 70% of their products can be connsidered permitted investment projects. |
