China has just announced an version of a negative list to ease the foreign investment rules, removing restrictions to a wider range of sectors including banking, car manufacturing and agriculture as the government fulfill its promise to open the market further.
According to the "Special Administrative Measures on Access to Foreign Investment (Negative List) (2018 Version)," jointly released by the National Development and Reform Commission (NDRC) and the Ministry of Commerce on Thursday, the new negative list will cut the total number of restricted items from 63 to 48.
Jointly released by the National Development and Reform Commission (NDRC) and the Ministry of Commerce, the new negative list will become effective on July 28, 2018.
The new list also detailed a timetable for opening-up in the automobile and finance sectors, the commission said.
The new list widens market access for foreign investment in primary, secondary as well as tertiary sectors, detailing 22 opening-up measures in fields including finance, transportation, professional services, infrastructure, energy, resources, and agriculture.
Restrictions on the share of foreign ownership of entities such as securities firms, fund management companies, and futures and life insurance firms will be relaxed to 51 percent this year and is set to rise to 100 percent by 2021.
Limits on foreign ownership for companies engaged in the manufacturing of new energy vehicles will be cancelled in July, though those on other passenger vehicles will not be lifted until 2022.
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