Major improvements on foreign-investment restriction in China commenced on July 30th, 2019



 National Development and Reform Commission and the Ministry of Commerce issued the 2019 edition of Negative List for Market Entry of Foreign Investment ("Negative List") and Catalogue of Guidance on Encouraged Foreign-investment Industry ("Catalogue") on June 30th, 2019. The Negative List and Catalogue will come into effect on July 30th, 2019.

Nationwide, Negative List for Market Entry of Foreign Investment is cut down to 40 items from 48 items. Particularly for Pilot Free Trade Zones, while 6 new Pilot Free Trade Zones are incoming, Negative List is cut down to 37 items from 45 items. Restrictions of foreign investment in areas including urban fuel/heating service, cinema, talent agency, value-added telecommunication, publication, oil and gas exploration, nonferrous metals mining are to be loosened or eliminated.

In addition, 1108 items are included into the Catalogue to encourage foreign investment in those industries such as 5G core-components, industrial android and AI with preferential treatments regarding tax and land.

According to the spokesman of National Development and Reform Commission, Negative List will only be subtracted, not added, and by the end of this year, all restrictions on foreign investment except for Negative List will be removed to ensure consistent standards for domestic and foreign investment in market entry.

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