On 20 December 2025, China’s National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOFCOM) jointly released the Catalogue of Encouraged Foreign Investment Industries (2025 edition). The catalogue entered into force on 1 February 2026 and replaces the previous 2022 edition.
The catalogue is a key policy instrument under China’s Foreign Investment Law. It signals priority areas where foreign direct investment (FDI) is actively encouraged and supported, provided that projects comply with market access rules and other applicable regulations. Across the agri-food sector, the catalogue places a strong emphasis on sustainability, productivity gains, and green development.
How the catalogue works
Foreign investment projects falling under the encouraged categories may benefit from a range of investment-related support measures. These typically include tariff exemptions for imported equipment used in approved projects, preferential land-use arrangements, and, in certain regions, reduced corporate income tax rates.
The catalogue does not regulate trade or imports as such. Rather, it aims to guide investment decisions and foster economic development in China.
Encouraged sectors in agriculture and food
In the agri-food domain, the national catalogue encourages foreign investment across the entire value chain, with a clear focus on resource efficiency, environmental protection, and technological upgrading. Encouraged areas include:
1. crop cultivation and breeding, including woody oil crops, fruits, vegetables, tea, brewing grapes, forage crops, and aromatic plants;
2. livestock and aquaculture, including standardized and intelligent breeding systems, aquaculture, and deep-water and industrial farming;
3. sustainable land and water management, including water-saving irrigation, soil improvement, saline-alkali land utilization, green farmland construction, and agricultural waste recycling;
4. agricultural inputs, including organic and microbial fertilizers, feed additives, and biological crop protection products;
5. smart agriculture and agricultural services, including digital solutions, precision farming, cold-chain logistics, and rural e-commerce;
6. agricultural processing and food manufacturing, covering meat, dairy, fruit and vegetable processing, plant-based foods, beverages, and food processing and packaging equipment;
7. agricultural and forestry machinery, including high-horsepower tractors, harvesting equipment, precision irrigation and spraying systems, livestock equipment, machinery adapted to hilly and mountainous areas, and technologies for straw and manure management.
Regional investment priorities
In addition to the national catalogue, the regional catalogue for central, western, and other regions sets out location-specific priorities that reflect regional resource endowments and development needs. Key regional orientations include:
Northeast China (Heilongjiang, Jilin, Liaoning, Inner Mongolia): grain production and processing, animal husbandry, agricultural machinery manufacturing, and straw utilization;
Central China (Henan, Hubei, Hunan, Anhui, Jiangxi): food processing, feed production, agri-logistics, and modern farming services;
Southwest China (Sichuan, Chongqing, Yunnan, Guizhou, Tibet): specialty crops, ecological agriculture, agroforestry, and machinery suitable for hilly and mountainous terrain;
Northwest China (Shaanxi, Gansu, Qinghai, Ningxia, Xinjiang): water-saving irrigation, soil improvement, cotton and livestock processing, and cold-chain infrastructure;
Southern China (Guangxi, Yunnan, Hainan): tropical agriculture, aquaculture, seed breeding, and export-oriented agri-food production.
These regional priorities aim to attract foreign investment into less developed areas while supporting rural revitalization and greener growth paths.
Relevance for German agri-food industries
For German companies, the catalogue is particularly relevant for providers of:
- agricultural and forestry machinery and equipment, including precision farming technologies and machinery for hilly and mountainous areas;
- bioeconomy solutions, including biomass utilization, bio-based inputs, and circular agriculture technologies;
- manure, nutrient, and waste management systems;
- irrigation, soil improvement, and water-saving technologies;
- food processing, packaging, and cold-chain logistics equipment;
- digital solutions and services for smart and sustainable agriculture.
Rather than promoting exports of finished products, the catalogue primarily favors investment-based engagement, including local production, joint ventures, technology transfer, and service provision in China.
Overall, the updated catalogue reflects China’s strategic priorities to steer foreign investment toward green development, productivity improvements, and structural upgrading in key sectors. In agriculture and food, it underlines China’s ambition to modernize domestic production systems, reduce resource pressures, and strengthen resilience along the value chain.
Download catalogue
You can download the full catalogue here (in Chinese).
