CHINA: Updated Negative List for Foreign Investment in Ftzs Released

Wednesday July 4 2018

An updated negative list for foreign investment in free trade zones has been jointly released by the National Development and Reform Commission (NDRC) and the Ministry of Commerce. The updated list has reduced the number of restricted sectors from 95 to 48 and will become effective starting 30 July 2018.

Under the revised list, foreign investors will be allowed no more than a 66% stake in breeding new wheat and corn varieties and the seed production thereof, compared with a cap of 49% in the previous list.

Foreign investors will no longer be required to have to conduct oil and natural gas exploration and development through joint ventures, and a ban on foreign investment in production of nuclear fuel and radioactive minerals will be lifted, the NDRC has stated.

Foreign investors will additionally be allowed to own a majority stake in performing arts agencies.

This follows the announcement of a shortened Nationwide negative list for foreign investment, which cut restrictions from 63 to 48 sectors. This included easing of foreign investment restrictions on sectors including banking, the automotive, heavy industries and agriculture.

Within the financial sector specifically, the ratio of foreign shares in the banking industry was removed, and the ratio of foreign shares of securities companies, fund management companies, futures companies, and life insurance companies was relaxed to 51%.

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