CHINA: Nationwide Negative List to Spur Foreign Investment

Monday September 25 2017

China will roll out a negative list for foreign investment, which has been tested in pilot free-trade zones.

The negative list model states the sectors and businesses that are off limits to foreign investment, will be adopted nationwide as early as 2018.

The approach had an initial test run in Shanghai, Tianjin, Guangdong and Fujian, before expanding to other places, including Zhejiang and Hubei, for further testing.

On 16^th August, the State Council issued a document saying that China would make its foreign investment environment “more law-based, internationalized and convenient” to promote growth and raise the quality of foreign investment. In line with this, China will expand market access to allow foreign capital in sectors including new-energy vehicle manufacturing, ship design, aircraft maintenance and railway passenger transport.

On 28^th July, China began to implement a revised foreign investment catalogue, which included a negative list as well as sectors and industries in which the government wants to encourage foreign companies to invest.

Please click on the above link for more information.