China updates Negative List to further remove foreign investment restrictions

30 July 2019

On 30 June 2019, China’s National Development and Reform Commission and Ministry of Commerce jointly issued the following three revised lists relating to foreign investment:

• Negative list applicable to foreign investment nationwide (“Negative List 2019”)
• Negative list applicable to foreign investment in China’s pilot free trade zones (“FTZ Negative List 2019”) 
• Catalogue of sectors in which foreign investment is encouraged (“Encouraged Catalogue 2019”)

The lists and catalogue take effect on 30 July 2019.

Neither the Negative List 2019 nor the FTZ Negative List 2019 has imposed any new restrictions or prohibitions for foreign investment in China. Instead, the Negative List 2019 reduces the number of sectors in which foreign investment is restricted or prohibited to 40 from 48 in the 2018 negative list. Similarly, the FTZ Negative List 2019 reduces restricted or prohibited sectors to 37 from 45 in the 2018 FTZ negative list.

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