China to Roll Out Nationwide 'Negative List' by Oct. 1
(Beijing) – China will adopt a nationwide "negative list", which identifies industries that are closed to overseas investors, on Oct. 1, following a three-year pilot project in the Shanghai Free Trade Zone.
Currently, local governments can prevent or limit investments in sectors that have not been specifically cleared. The list aims to relax restrictions for foreign investors and open-up markets further, the State Council, China's cabinet, said on Monday.
Companies who want to tap sectors outside the list no longer need government approval before investing, a statement from the Ministry of Commerce said. Instead, they need only to submit a detailed plan and register with the Ministry of Commerce.
The negative list includes 18 industries such as fisheries and the domestic courier business, which has grown quickly with the rise of online shopping. Other areas barred to foreign investors include exploitation of rare metals such as tungsten, molybdenum, tin and antimony; ivory carving; selling tiger bones; and producing arms and ammunition.
The list will replace a catalogue issued two decades ago to identify industries that rejected foreign capital.
Inbound foreign investment rose at a moderate 5 percent year-on-year in the first half to $70 billion.
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