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New Negative List on Foreign Investment in China

Updated:2018-9-26 17:36:57    Source:www.tannet-group.comViews:516

The Negative List is a list of industries in which foreign investment is either prohibited or restricted. The Free Trade Zone (FTZ) Negative List follows the same logic, but is less restrictive than the national list and only applies to China’s free trade zones. For industries not included in the Negative List, foreign investors are given equal treatment to domestic Chinese investments, save for record-filing requirements.

The new Negative List of 2018 will immediately relax or remove restrictions on foreign investment in the agriculture, mining, and infrastructure sectors. The finance, insurance, and automobile sectors, meanwhile, will experience more gradual reform, due to the incremental liberalizations effected by the timetable included in the Negative List. A summary of some of the key opening-up measures for the national Negative List is shown below.

Negative List for Free Trade Zone
The 2018 FTZ Negative List will further reduce restrictions on foreign investment in China’s free trade zones by reducing 50 restrictive measures on the list. Additional restrictions removed in the 2018 FTZ Negative List include the following industries:

1. Prospecting and exploitation of petroleum and natural gas;
2. Aviation manufacturing;
3. Wholesale retail of tobacco and cigarettes;
4. Legal services;
5. Foreign education institutions;
6. Smelting and processing of radioactive mineral resources as well as the production of nuclear fuel; and
7. Stage performance agencies.

The updated Negative List shows that China is gradually opening up its market to foreign investors. Tannet has established branches in Beijing, Tianjin, Shanghai, Guangzhou, Shenzhen, Dongguan, Chengdu, Nanchang, Yiwu, Xiamen, Quanzhou, Hong Kong, Macau, and Hainan. We can help you set up a business presence in China with high quality service and favorable price.

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