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China’s Ministry of Commerce and the National Development and Reform Commission recently issued new guidance on foreign investment, for the first time pledging that a negative list will be the fundamental basis for managing foreign investment nationwide. In principle, foreign investors are free to engage in fields not included on the negative list.
According to the guidance, a new negative list will come into effect as of July 28, and includes 35 restrictions, including agricultural areas such as planting and seed selection, and 28 bans, including air traffic control, and compulsory education.
Notably, the new list loosens control on the service sector, manufacturing and mining. For example, restrictions have been lifted for road transportation, ratings and accounting, new-energy vehicle batteries, and the mining of precious metals and lithium ores. Officials said that local governments are empowered to directly put on record the foreign investment not covered by the negative list.
