Chinalyse | New Negative Lists for Foreign Investments in China

New Negative Lists for Foreign Investments in China

By  on 
January 1, 2021
  • LJZ
The new lists of prohibited or restricted foreign investments in China
The National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOF) on 23 June 2020 jointly published two “Negative Lists” which refer to the Special Administrative Measures on Access of Foreign investments, and to the Special Administrative Measures for Free Trade Zones on Access for Foreign Investments.
The purpose of these lists is to identify and point out the sectors in which foreign investments are prohibited or restricted.
Signs of a Continuous and Gradual Opening
The lists released in 2020 confirm the trend of previous years that sees the Chinese government engaged in a reduction of the limitation measures for foreign investments in the country.
From the analysis of the negative lists one can easily deduce the will to accelerate the opening process in key sectors of the economy such as the financial one, for which all restrictions have been lifted and is now fully accessible to foreign investment. In addition, important concessions have also been made in the transportation, infrastructures, manufacturing and agriculture sectors.
What Next?
It is safe to say that the perspectives for foreign investments in China are changing rapidly. From a pool of low-cost manufacturing labor, China has transformed into a huge consumer market in which high-end services and manufacturing play an important role. With the new openings, there will be an acceleration of foreign investments in the country due to an increased confidence and a general structural improvement.
Therefore we can expect further openings in the near future and it is advisable to keep up to date on any possible development.
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