China on Wednesday released an updated catalogue encouraging foreign investment, as authorities move to better guide overseas capital and improve the quality and regional balance of inbound investment.

The 2025 Catalogue of Industries for Encouraging Foreign Investment, jointly issued by the National Development and Reform Commission and the Ministry of Commerce, contains 1,679 items, a net increase of 205 from the 2022 version. It includes a nationwide list and a separate list highlighting region-specific advantages.

The new catalogue places greater emphasis on advanced manufacturing and modern services, expanding support for areas such as end products, components, raw materials, business services, technology services and scientific research. It also encourages foreign investment in central and western China, the northeast region and Hainan Province. The rules will take effect on February 1, 2026.

According to KPMG's "2025 MNC China Outlook" released on Monday, most multinationals in China are staying the course despite near-term pressures. A survey of 137 senior executives shows that 75 percent of them plan to maintain or increase investment in China in 2025. At the same time, 83 percent of the multinationals have already localized or plan to localize key operations, particularly in manufacturing, supply chains, and research and development.