On December 27, 2021, the National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOC) released two revised negative lists for foreign investment market access. The two lists, one for the rest of the country and one for the piloted free trade zones (FTZ) , contain fewer access-limiting measures. New measures of the two revised negative lists has been implemented since January 1, 2022.
source:www.gov.cn
In recent years, China has deepened its high-level opening-up and continuously broadened foreign investment market access. The two revised negative lists published in 2021 have reduced to 31 and 27 listed items respectively, which means that the negative lists for foreign investment market access have decreased for 5 consecutive years.
Yang Changyong, a researcher from Chinese Academy of Macroeconomic Research, said, " To further shorten the negative lists for foreign investment market access is an important measure taken by China to expand opening-up at a higher level and promote high-quality economic development. Meanwhile, it is also a concrete action by China to share development opportunities with the rest of the world and make the globalization of economy become more open, inclusive, balanced and beneficial to all."
（source:www.gov.cn）
Main changes of the new negative lists
for foreign investment market access
01
Deepen opening-up in manufacturing industry.
In automotive manufacturing field, the foreign equity limit in passenger-vehicle manufacturing and the restriction that a foreign-invested enterprise can on establish two or fewer joint ventures in China to produce the same complete vehicle products will be abolished. This revision has eliminated the listed items in manufacturing industry on the negative list for piloted free trade zones.
02
Expand access for service industry in the piloted free trade zones.
In market investigation, restrictions on foreign investment market access will be removed, except that radio and television and the audience rating survey must be controlled by the Chinese side. In social investigation, foreign investment will be allowed, but the proportion of Chinese shares should not be less than 67 percent, and the legal representative should have Chinese nationality.
03
Improve the accuracy of the negative lists for foreign investment market access.
According to a newly added term, domestic enterprises engaged in investment fields which are forbidden by the negative lists for foreign investment market access, shall be approved by the relevant state departments, if they want to issue shares and list on the stock exchange in foreign countries. Besides, foreign investors shall not participate in enterprise management, and the proportion of its shares shall be implemented under relevant regulations on the management of domestic securities investment for foreign investors.
04
Optimize management of the negative lists for foreign investment market access.
Foreign-invested enterprises shall comply with the two revised negative lists for foreign investment market access if they want to invest in China. Domestic and foreign investors shall abide by the relevant regulations of the negative list for market access.
Since the management system of the negative lists for foreign investment market access established, China has become more open to foreign investment. The negative lists for foreign investment market access published in 2021 will promote China's high-level opening-up, create a sound business environment, provide policy support for foreign investment, and further attract foreign investors to invest and develop their enterprises in China.
HACOS always pays attention to various policies and will update the information for our customers.
If you want more information, please contact our consultants or leave your message.
