Major announcement! which high-end new materials does china encourage foreign investment to focus on?

Recently, with the approval of the State Council, the National Development and Reform Commission and the Ministry of Commerce have released the full text of the "Encouraged Foreign Investment Industries Catalogue (2025 Edition)" (hereinafter referred to as the "Encouraged Catalogue"), which will be implemented from February 1, 2026.

The new version of the "Encouragement Catalogue" contains a total of 1,679 entries, with a net increase of 205 entries and modifications to 303 entries compared to the 2022 version.

The National Directory of Encouraged Industries for Foreign Investment contains a total of 619 items, with 100 items added and 131 items modified. The Directory of Advantageous Industries for Foreign Investment in the Central and Western Regions and other areas (hereinafter referred to as the Regional Directory) contains a total of 1,060 items, with 105 items added and 172 items modified.

The main changes are:

The "Encouragement Catalogue" has added or expanded relevant entries in the fields of end products, components, and raw materials to guide foreign investment in advanced manufacturing and enhance the development level of the industrial chain and supply chain.

To guide foreign investment in modern service industries, the "Encouraged Catalogue" has added or expanded entries related to business services, technical services, scientific research, and service consumption, promoting high-quality development in the service sector.

Additionally, encourage and guide foreign investment in the central and western regions, the northeastern region, and Hainan Province.

Encouraged Foreign Investment Industries Catalogue

(2025 Edition)

The following content from the "Catalog for Encouraging Foreign Investment Industries (2025 Edition)" is related to new chemical materials, including specialty rubbers (such as butadiene rubber, solution polymerized styrene-butadiene rubber, silicone rubber, fluorosilicone rubber), engineering plastics (such as PPS, PEEK, PI, LCP, specialty nylon), high-end polyolefins (such as COC/COP), fine chemicals, high-performance polyurethane, bio-based chemicals, high-performance fibers and their composites, etc. (See the attachment at the end for detailed content).

3. Manufacturing Industry

(10) Manufacturing of Chemical Raw Materials and Chemical Products

Development and production of new downstream organosilicon products

Supporting raw materials for synthetic materials: propylene oxide by hydrogen peroxide oxidation of propylene, naphthalene dicarboxylic acid dimethyl ester (NDC), 1,4-cyclohexane dimethanol (CHDM), production of 50,000 tons/year or more of butadiene-based adiponitrile, hexamethylenediamine, norbornene production.

Production of polyethylenepolyamine products

Development and production of high-end polyolefins such as high-carbon α-olefin copolymer metallocene polyethylene, cyclic olefin copolymers (COC/COP), and highly reactive polyisobutylene.

69. Synthetic fiber raw material production: 1,3-propanediol

Synthetic rubber production: acrylate rubber, epichlorohydrin rubber, butadiene rubber, solution styrene-butadiene rubber, and special rubbers such as fluororubber, silicone rubber, fluorosilicone rubber, thermoplastic polyurethane rubber, etc.

Production of engineering plastics and plastic alloys: polyphenylene sulfide, polyether ether ketone, polyimide, polysulfone, polyethersulfone, polyarylate (PAR), polyphenylene oxide, specialty polyamide (PA) and its modified materials, liquid crystal polymers, etc.

72. Fine Chemicals: New products and technologies in catalysts, commercialization processing technology for dyes (pigments), electronic chemicals and paper chemicals, leather chemicals, oilfield additives, surfactants and the ultra-high pressure continuous production technology of key raw materials such as isomeric tridecanol (with a single device capacity of 30,000 tons/year or more), and the nitrogen-protected double shell tower safe production technology for refined ethylene oxide, production of water treatment agents and key raw materials, high solids, solvent-free, water-based, electron beam curing, ultraviolet curing, reactive adhesives and production of key raw materials including high-end butyl acrylate and high-end octyl acrylate, polyester polyols, curing agents, production of sealants, adhesive tapes and key raw materials, high-efficiency, safe, environmentally friendly plastic additives (such as polyester plasticizers, halogen-free flame retardants, permanent antistatic agents, organic heat stabilizers, nucleating agents), production of inorganic fibers, inorganic nanomaterials, pigment coating treatment deep processing, development and production of environmentally friendly surface treatment technology products, development and production of humic acid fine chemical products, development and production of sealants, adhesives, encapsulants, thread lockers, industrial cleaning agents with low volatile organic compounds (VOCs) content.

Production of water-based inks and adhesives, low volatile inks and adhesives such as electron beam curing and ultraviolet curing, environmentally friendly organic solvent materials, and environmentally friendly organic solvent-free materials.

74. Production of high-performance coatings, adhesives, low VOCs content industrial coatings such as high solids, water-based, powder, radiation curing, solvent-free, and supporting resins, as well as water-based industrial coatings and supporting water-based resins (including high-end butyl acrylate and high-end octyl acrylate).

High-performance fluororesin, fluorine film materials, medical fluorine-containing intermediates, production of refrigerants, cleaning agents, and foaming agents with zero ozone depletion potential (ODP) and low global warming potential (GWP) in compliance with international conventions.

76. Development, storage, transportation, and liquefaction of green hydrogen production technologies (hydrogen production from chemical by-products, biological hydrogen production, water electrolysis hydrogen production from renewable energy sources, etc.)

Production and supply of large-scale or high-purity industrial gases

86. Organic polymer materials production: aircraft skin coatings, rare earth cerium sulfide red dye, lead-free electronic packaging materials, specialized photoresist slurry for color plasma displays, small diameter high specific surface area ultra-fine fibers, high precision fuel filter paper, self-healing surface treatment materials, superhydrophobic nano-coating materials, ultra-high refractive index resin materials, environmentally friendly recyclable solar panel back sheets and back sheet plastic materials, start-stop automotive lead-acid battery separators, energy storage lead-acid battery separators, photoresist slurry for integrated circuit industry, functional film materials for solar cells.

88. Development of Low-carbon Upgrading Processes for Petrochemical Raw Materials: Electrically Driven Ethylene Cracking; Processes of Reverse Water Gas Shift and Partial Oxidation to Convert Carbon Dioxide and Light Hydrocarbons into Carbon Monoxide.

Renewable Energy Electrolysis Hydrogen Production - Ammonia, Renewable Energy Electrolysis Hydrogen Production - Methanol Production, Storage, and Transportation

90. Polyvinylpyrrolidone production

Development and production of metallocene polypropylene products

High value-added, high-performance polyurethane and downstream new material products, as well as the development and production of supporting raw materials.

Production of Raw Materials Required for Lithium Batteries: Ultra-High Molecular Weight Polyethylene

94. Development and production of bio-based chemicals

(12) Chemical Fiber Manufacturing Industry

Continuous copolymer modification of differentiated and functional polyester (PET) (cationic dyeable polyester [CDP, ECDP], alkali-soluble polyester [COPET], high shrinkage polyester [HSPET], flame retardant polyester, low melting point polyester, amorphous polyester, biodegradable polyester, polyester produced using green catalysts, etc.); research and development of efficient and flexible preparation technology for differentiated and functional chemical fibers such as flame retardant, antistatic, anti-ultraviolet, antibacterial, conductive, phase change energy storage, intelligent temperature control, photochromic, dope dyed, adsorption and separation, biomedical; production of intelligent and ultra-realistic functional chemical fibers; original development of green, efficient, and environmentally friendly fiber oils for high-speed spinning processing.

118. Development, production, and application of high-performance fibers and products: Carbon Fiber (CF) (tensile strength ≥ 4200 MPa, elastic modulus ≥ 230 GPa), Aramid Fiber (AF), Polyphenylene Sulfide Fiber (PSA), Ultra-High Molecular Weight Polyethylene Fiber (UHMWPE) (spinning production device single-line capacity ≥ 300 tons/year, breaking strength ≥ 40 cN/dtex, initial modulus ≥ 1800 cN/dtex), Polyphenylene Sulfide Fiber (PPS), Polyimide Fiber (PI), Polytetrafluoroethylene Fiber (PTFE), Polybenzoxazole Fiber (PBO), Polyarylate Fiber (POD), Polyether Ether Ketone Fiber (PEEK), Poly(2,5-dihydroxy-1,4-phenylene-pyridobisimidazole) Fiber (PIPD).

Development and production of new polyester and fiber: Polytrimethylene terephthalate (PTT), Polyethylene naphthalate (PEN), Polybutylene terephthalate (PBT), Polycyclohexylene dimethylene terephthalate (PCT).

Develop and produce degradable fiber materials (polybutylene succinate [PBS], polybutylene adipate terephthalate [PBAT], polycaprolactone [PCL], polyhydroxyalkanoates [PHA], polylactic acid fiber [PLA]), Lyocell staple fiber (single line over 50,000 tons) and Lyocell filament, bio-based fiber materials (regenerated cellulose fibers, seaweed fibers, chitosan fibers, animal and plant protein fibers, bio-based polyamide, bio-based polyester) using green and environmentally friendly processes and equipment, with bamboo, hemp, and other new renewable resources as raw materials.

Development and production of new types of polyamides such as Nylon 11, Nylon 12, Nylon 1414, Nylon 46, Nylon 56 (using non-food biomass as raw material), long carbon chain nylon, high-temperature-resistant nylon, and differentiated, functional, high value-added modified nylon (including nylon elastomers, copolymer nylon, nylon engineering plastics, flame-retardant nylon).

122. Recycling and Reuse of Nylon Products

(13) Rubber and Plastic Products Industry

123. Development, production, and application of silicone products

Development, production, and application of biodegradable plastics and their products.

Development and production of new wide-width multifunctional agricultural film with light ecology and pollution-free degradable agricultural film.

126. Sorting, Recycling, and Reusing Waste Plastics

Development and production of new packaging materials such as vacuum aluminum plating, silicon oxide spray coating, polyvinyl alcohol (PVA) coated films, functional polyester (PET) films, energy-saving low-carbon polypropylene films using solvent-free or thermal lamination, oriented polystyrene (OPS) films, and multi-layer composites based on paper-plastic.

128. Research and production of flame-retardant and steel-replacing wear-resistant plastic products.

129. Intermediate Bulk Container (IBC) manufacturing and recycling.

(14) Non-metallic Mineral Products Industry

Annual production of 10 million square meters or more of elastomer and plastomer modified bitumen waterproof membranes, wide-width (over 2 meters) ethylene propylene diene monomer (EPDM) rubber waterproof membranes and supporting materials, wide-width (over 2 meters) polyvinyl chloride (PVC) waterproof membranes, and thermoplastic polyolefin (TPO) waterproof membrane production.

135. Development and production of new technology functional glass: infrared-transmitting lead-free chalcogenide glass and products, optically superior multifunctional windshield glass (light transmittance ≥70%), coated privacy windshield glass, soundproof windshield glass, solar windshield glass, conductive photochromic windshield glass, electrically heated windshield glass, head-up display windshield glass, vacuum glass, high purity (≥99.998%) ultra-pure (≥99.999%) quartz material purification and processing, high borosilicate glass, high-alumina cover glass, aluminum silicate glass for solar equipment.

Thin film photovoltaic cells, solar concentrator glass, photovoltaic modules for construction.

Production of alkali-free glass fiber roving from tank furnace drawing with a capacity of 1.378 million tons/year and above (single filament diameter >9 microns), production of alkali-free glass fiber yarn from tank furnace drawing with a capacity of 50,000 tons/year and above (single filament diameter ≤9 microns), production of ultra-fine glass fiber (single filament diameter ≤5 microns), degradable glass fiber, glass fiber with special cross-sections, alkali-resistant glass fiber, low dielectric glass fiber, quartz glass fiber, high silica glass fiber, high strength and high elasticity glass fiber, ceramic fiber and other high-performance and special glass fiber, as well as production of glass fiber mats, fabrics, and other products.

Production of optical fibers and products: image conduits and laser medical optical fibers, second and third generation microchannel plates, optical fiber panels, image inverters, and glass light cones.

Standardized refinement of ceramic raw materials and production of high-grade ceramic decorative materials.

Production of long-life, energy-saving, and environmentally friendly (chrome-free) refractory materials for kilns used in cement, electronic glass, ceramics, and microporous carbon bricks.

141. Porous ceramic production

142. Production of new inorganic non-metallic materials and products: composite materials, special ceramics, special sealing materials (including high-speed oil seal materials), special friction materials (including high-speed friction brake products), special cementitious materials, special latex materials, underwater acoustic rubber products, nanomaterials.

143. Production of Class A fireproof insulation materials

144. Production of high-tech composite materials: continuous fiber reinforced thermoplastic composites and prepregs, resin-based composites with temperature resistance >300℃ for molding process auxiliary materials, biodegradable resin-based composites, resin-based composites for additive manufacturing, resin-based composites (including sports goods, lightweight and high-strength transportation vehicle components), special functional composites and products (including deep water and diving composite products, medical and rehabilitation composite products), carbon/carbon composites and products, high-performance ceramic matrix composites and products, metal matrix and glass matrix composites and products, metal laminated composites and products, ultra-high pressure composite hoses with pressure ≥320 MPa, large passenger aircraft aviation tires, polyester structural foam materials (used for lightweight and high-strength transportation vehicle components, wind turbine blade core materials, and construction materials field).

The "Encouraged Catalogue" is a significant foreign investment promotion policy in China, as well as an important policy for foreign-funded industries and regions. China released the "Encouraged Catalogue" four times in 2019, 2020, 2022, and 2025, continuously increasing the number of encouraged items, optimizing the structure of foreign-funded industries, and improving the regional layout of foreign investment.

Experts say that the new version of the "Encouragement Catalogue" demonstrates China's firm determination to continuously expand high-level opening up and provides global investors with clear, stable, and transparent investment expectations.