China Introduces New Negative List for Foreign Investment

On June 16, China’s State Council released a new foreign investment negative list to further ease investment access. These new measures on foreign investment access will take effect on July 10, and replace the old one issued in April 2015.

The new negative list covers 40 categories and 95 special management measures grouped into 15 sectors, such as mining, commercial services, manufacturing, retail, or financing. It eases regulation on 10 categories and 27 measures in such fields as aviation manufacturing, waterway transportation, banking services and education.

According to the State Council’s circular, fields not covered by the negative list, such as national security, public order, or public culture, should follow the existing regulations. For the non-prohibited investment sectors on the list, a foreign investment permit is necessary. For all industries not listed in the new list, foreign investors will receive equal treatment with the domestic companies in China’s free trade zones.

Source: / Electronic communication platform of the State Council of the People’s Republic of China

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