Legislation roundup: National and FTZ negative lists, and encouraged foreign investment catalogue
July 04, 2019 | BY
Susan MokThe national and FTZ negative lists are downsized relaxing foreign investment in business such as cinema operations, and the new Catalogue of Encouraged Foreign Investment in Industry supports foreign investment in high-end manufacturing.
FDI
National Development and Reform Commission and Ministry of Commerce, Special Administrative Measures for Foreign Investment Access (Negative List) (2019 Edition)
The Negative List is downsized from 48 items to 40 items, removing items such as:
- for the mining sector, exploration and development of oil and natural gas (unless coalbed methane, oil shale, bituminous sands or shale gas is involved) are limited to equity and cooperative joint ventures; and
- for the culture and leisure sector, the construction and operation of cinemas require the Chinese party to hold a controlling interest, and performance brokerages require the Chinese party to have a controlling interest.
See the full translation.
National Development and Reform Commission and Ministry of Commerce, Special Administrative Measures for Foreign Investment Access in Pilot Free Trade Zones (Negative List) (2019 Edition)
The FTZ Negative List is downsized from 45 items to 37 items, removing items such as:
- for the printing sector, printing of printed matter requires the Chinese party to have a controlling interest; and
- for the culture and leisure sector, the construction and operation of cinemas require the Chinese party to hold a controlling interest.
See the full translation.
Further reading
National Development and Reform Commission and Ministry of Commerce, Catalogue of Encouraged Foreign Investment in Industry (2019 Edition)
The Catalogue combines the Encouraged Catalogue of the Foreign Investment Industrial Guidance Catalogue (Amended in 2017) and the Catalogue for Foreign Investment in the Dominant Industries of the Central and Western Regions (Amended in 2017) and revises them.
Eighty percent of the new or revised items of the national list of the Catalogue belong to the manufacturing sector, supporting more foreign investment in high-end manufacturing, intelligent manufacturing, green manufacturing, etc. In the electronic information industry, the Catalogue adds items on 5G core components, etching machines for integrated circuits, chip packaging equipment, cloud computing equipment, etc.
See the digest for more details.
Further reading
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