China’s Market-entry Negative List Updated

China's Market-entry Negative List Updated
China’s Market-entry Negative List Updated

On 30 June, 2019 China’s National Development and Reform Committee (NDRC) and Commerce Ministry released the updated Special Administrative Measures on Foreign Investment Access (Negative List) (2019 Version), also with the Negative List in the Free Trade Pilot Zone.

These two lists will come into force on July 30th, 2019.

The new, shortened nation wide negative list cuts the items off limits to foreign investment from 48 down to 40, in the latest move to honor its commitment to further open up its economy.

Seven major sectors, including shipping agencies, gas and heat pipelines in cities with more than 500,000 people, cinemas, value-added telecoms, and oil and gas exploration and development, saw ownership restrictions relaxed or removed.

The main changes include:

1. Further opening up in service industry

  • In the field of transportation, the restriction that domestic shipping agents should be controlled by the Chinese party have been abolished. 
  • In the field of infrastructure, the restriction that the gas and thermal pipeline networks in the cities with a population of morethan 500,000 people should be controlled by the Chinese party has been abolished. 
  • In the cultural field, the restriction that cinemas and performance brokers should be controlled by the Chinese party has been be abolished. 
  • In the field of value-added telecommunications, the restrictions on foreign investment in multi-party communication, storage and forwarding, and call center have been lifted.

2. Further easing access toagriculture, mining and manufacturing industries

  • In the field of agriculture, the provisions prohibiting foreign investment in the development of wild life resources have been abolished. 
  • In the field of mining, the restrictions on exploration and development of oil and gas to joint ventures and cooperation have been abolished, and the provisions prohibiting foreign investment in exploration and exploitation of molybdenum, tin, antimony and fluorite have been abolished. 
  • In the manufacturing sector, the prohibition of foreign investment in the production of rice paper and ink ingots has been abolished.

   3. Further opening up the “experimental fields” of the Free Trade Pilot Zone

The 2018 version of the negative list of the Free Trade Pilot Zone takes the lead in cancelling the restrictions, for example, on foreign investment’s access to performance brokerage agencies, oil and gas exploration and development.

Now all the pilot measures are spread to the whole country. In this revision, the negative list of the Free Trade Pilot Zone cancels the restrictions on foreign investment in fishing, publication printing and other fields, and continues to carry out the pilot test of expanding opening-up.

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