China is liberalizing its rules on Foreign Direct Investment (FDI), according to a revised catalogue that took effect on Friday. The new index retains the government’s “negative list” approach by clearly stating which industrial sectors are off limits to foreign investors, but reduces the number of those sectors by one-third.

The revised FDI catalogue further opens foreign investment opportunities in service industries as well as in manufacturing and mining.

Foreign firms can now invest in ratings services, agricultural produce wholesaling and highway transport. Advanced manufacturing industries in which China wants to upgrade its production capabilities, such as rail transport and auto batteries, are also open to foreign investors.

Investment in virtual and augmented reality and 3D printing are now also encouraged. The revised FDI rules are aimed at giving a boost to foreign investment, which has been slowing, into the country.

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