Further opening of the financial industry
Access to manufacturing and agriculture industry
Comparing with Edition 2019, in the manufacturing sector, Negative List 2020 and FTZ Negative List 2020 eased the restrictions on foreign shares in commercial vehicle manufacturing and abolished the provisions prohibiting foreign investment in radioactive mineral smelting, processing and nuclear fuel production. Further easing the access of foreign investment in manufacturing industry will help to promote fair competition between foreign-invested enterprises (FIE) and domestic enterprises, and further activate the development and the orderly competition of the domestic market. At the same time, in the field of agriculture, the provision of new wheat varieties breeding and seed production must be controlled by Chinese investors is now changed into no less than 34% of the Chinese equity. Easing the access restrictions in the agricultural field is a practical need to expand the opening up of agriculture, improve the competitiveness of agricultural enterprises, and promote the high-quality development of agriculture in China.
Increase the infrastructure and openness
Further open up of the pilot free trade zone
On the basis of the national version of the opening-up measures, the Free Trade Zone will continue to lead the time. But in the field of pharmaceutical industry, the prohibition of foreign investment in Chinese herbal pieces has been abolished. In the field of education, Wholly Foreign-Owned Enterprises (WFOE) are now allowed to set up vocational education institutions with educational system. These measures will help understand the development of relevant fields in the free trade zone after opening up, and promote the steady and orderly development of China’s opening up to the world. Comparing with the 2019 FTZ Negative List, the 2020 FTZ Negative List basically adopts the same arrangements on “Relaxation of restrictions”, “Lifting of prohibitions or restrictions”, and “Special provision”, as set out in the above table regarding the 2020 National Negative List.
In great Chinese leader‘s words, China will lift all foreign investment restrictions beyond the negative list, and provide equal treatment to all types of businesses registered in China in the post-establishment phase. A complaint mechanism will be set up for foreign companies to air their grievances.
This article is only an overview of China’s negative lists 2o2o for foreign investment access. Links are provided in the Resources section.