CHINA: China introduces new negative list for FTZ foreign investment

China has removed 27 restrictions in its newly issued negative list for foreign investment in its free-trade zones, its cabinet said on Friday in a notice.
A negative list specifying the areas off limits to foreign capital is in place in China’s eleven free trade zones (FTZ’s), which operate on less restricted trade and financial regulations on a trial basis.

The revised negative list comprising more than 20 industries provides for reduced restrictions for foreign makers of rail transport equipment and civilian satellites, who will no longer be obliged to enter into a joint venture with Chinese partners.

Previously restricted sectors such as precious metals and lithium mining, as well as internet access services, credit rating services, and large-scale theme park construction, have now been opened up to foreign capital.

Rules on banking services, which in the past prohibited foreign banks from underwriting Chinese government bonds, have also been eased.

China opened its first FTZ in Shanghai in 2013. Since then, ten major provinces and cities such as Zhejiang and Chongqing have been approved to establish such zones.

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