Special Administrative Measures for Foreign Investment Access in Pilot Free Trade Zones (Negative List) (2019 Edition)

This Negative List has been revised. The new edition can be found here.

(Promulgated by the National Development and Reform Commission and the Ministry of Commerce on June 30, 2019 and effective as of July 30, 2019.)

(The Special Administrative Measures for Foreign Investment Access in Pilot Free Trade Zones (Negative List) (2018 Edition) shall be repealed simultaneously.)

Order of the NDRC and MOFCOM [2019] No.26

Remarks

1 . The Special Administrative Measures for Foreign Investment Access in Pilot Free Trade Zones (Negative List) (the Negative List) centrally sets forth special administrative measures in respect of access by foreign investors applicable to pilot free trade zones, such as equity requirements and requirements in respect of senior management personnel. For sectors not listed on the Negative List, administration shall be effected in accordance with the principle of equal treatment for domestic and foreign investors.

2 . For certain sectors, the Negative List sets forth a transition period for abolishing or relaxing access restrictions, and such access restrictions shall be punctually abolished or relaxed once the transition period expires.

3 . Foreign investors may not engage in investment and business activities as sole/family proprietors, investors in wholly individually-owned enterprises or members of farmers' cooperatives.

4 . Foreign investors may not invest in sectors in which the Negative List prohibits foreign investment. To invest in sectors not prohibited in the Negative List, procedures for foreign investment access permission must be carried out. Foreign-invested partnerships may not be established to invest in sectors with equity requirements.

5 . Where a domestic company, enterprise or natural person acquires an affiliated domestic company through a company lawfully established or controlled by it/him/her offshore and a foreign-invested project/enterprise establishment or modification matters thereof are involved, matters shall be handled in accordance with current provisions.

6 . With respect to measures such as administrative examination and approval, qualification conditions and national security relating to culture, finance and other such sectors not listed on the Negative List, matters shall be handled in accordance with current provisions.

7 . Where the Mainland and Hong Kong Closer Economic Partnership Arrangement and the subsequent agreements thereto, the Mainland and Macao Closer Economic Partnership Arrangement and the subsequent agreements thereto, the Cross-strait Economic Cooperation Framework Agreement and the subsequent agreements thereto, a free trade agreement or investment treaty entered into by China with a relevant country or an international treaty to which China has acceded offers more favorable opening measures to qualified investors, matters shall be handled in accordance with the relevant agreement or treaty.

8 . The National Development and Reform Commission and the Ministry of Commerce, in concert with relevant departments, are charged with interpreting the Negative List.

Special Administrative Measures for Foreign Investment Access in Pilot Free Trade Zones (Negative List) (2019 Edition)