Update of negative list of foreign investment access

On June 24, the National Development and Reform Commission and the Ministry of Commerce released "Special Management Measures for Foreign Investment Access (Negative List) (2020 Version)" and "Special Management Measures for Foreign Investment Admission in Free Trade Pilot Zones (Negative List) (2020) Annual Edition)". In the past three years, the national negative list of foreign investment access has been reduced from 93 to 40. The 2020 version of the national negative list of foreign investment access has been reduced from 40 to 33. The negative list of foreign investment access in the Pilot Free Trade Zone Reduced from 37 to 30.

 This revision further reduces the negative list of foreign investment access in accordance with the principle of only reducing and not increasing. Among them, the national negative list of foreign investment access was reduced from 40 to 33, and the negative list of foreign investment access in the Pilot Free Trade Zone was reduced from 37 to 30.

Main changes: First, accelerate the opening up of key areas in the service industry. In the financial sector, the restrictions on foreign shares of securities companies, securities investment fund management companies, futures companies, and life insurance companies were lifted. In the field of infrastructure, the rule that the construction and operation of urban water supply and drainage pipeline networks with a population of 500,000 or more must be controlled by the Chinese party.

The second is to relax access to manufacturing and agriculture. In the manufacturing sector, the restrictions on the share ratio of foreign investment in commercial vehicle manufacturing will be lifted, and the regulations prohibiting foreign investment in the smelting, processing and nuclear fuel production of radioactive minerals will be eliminated. In the agricultural field, the selection and breeding of new wheat varieties and the production of seeds must be relaxed from Chinese holding to a share ratio of not less than 34%.

The third is to continue to open pilots in the Pilot Free Trade Zone. On the basis of the national opening-up measures, the Pilot Free Trade Zone continues to test first. In the field of medicine, the regulations prohibiting foreign investment in traditional Chinese medicine decoction pieces were cancelled. In the field of education, wholly foreign-owned enterprises are allowed to establish vocational education institutions of academic system.