It is reported that China's new negative list for foreign investment in free trade zones will make it easier for foreign entry into the increasingly open market and benefit a global economy facing a wave of protectionism.
The National Development and Reform Commission and the Ministry of Commerce released the shortened negative list for FTZs on Saturday, two days after rolling out a list applicable nationwide.
A negative list shows areas where investment is limited or prohibited for foreign investors, with all other areas presumed to be open.
The new list reduces the number of sectors restricted for foreign investors to 45 in all free trade zones, from 95 last year. It is effective after July 30.
Compared with the negative list for nationwide implementation, the one for FTZs outlines the measures to open more key areas, such as agriculture, mining, culture and value-added telecommunications, according to the statement.
Specifically, the foreign investment cap for wheat, new corn variety breeding and seed production in FTZs, will be relaxed from less than 49 percent up to 66 percent ownership by foreigners.
Restrictions on joint ventures or foreign cooperation in exploration and exploitation of petroleum and natural gas will be removed. The ratio of foreigninvested shares in art performance organizations will also be lifted.
China had expedited the agenda to update the lists since the beginning of the year, before the United States threatened to levy tariffs on Chinese imports.
The country has continued on its own path of opening-up and adopted a series of measures in recent months. Hao said these actions are "powerful responses" to rising protectionism initiated by the US, and the benefits will be immediate.
To build a legal system for foreign investment, the enactment of the Law on Foreign Investment will be expedited in the future, according to the white paper China and the World Trade Organization.
For years, China has been committing itself to opening-up and providing other countries with more opportunities to share the benefits of its growth. (Source: China Daily)
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