New market access negative list consolidates policy trend
April 20, 2016 | BY
Katherine Jo &clp articlesChina has compiled its restricted and prohibited industries into a draft negative list for market entry. The new investment roadmap applies to both domestic and foreign businesses and will be tested in four key regions until end-2017
China's top economic planner, the National Development and Reform Commission (NDRC), and trade authority, the Ministry of Commerce (MOFCOM), have unveiled the Draft Negative List for Market Access (Trial Version), the new bible of industries that are off limits or subject to approval for investment.
This was released by order of the State Council, which detailed plans for the list in its October 2015 Opinions. They proposed that in working towards a unified negative list for market entry, China will first run a trial program in four areas: the cities of Shanghai and Tianjin and the provinces of Guangdong and Fujian. These are also where the pilot Free Trade Zones (FTZs) are located.
The four local governments will submit their comments to the State Council so as to tailor their own versions of the implementing rules to supplement the list, which will be applied in these designated areas until December 31 2017. The national rollout is planned for 2018.
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