China News Service, June 24, according to the Ministry of Commerce website, on June 23, the National Development and Reform Commission and the Ministry of Commerce issued Order No. 32 and Order No. 33, respectively issued "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 Version)", effective July 23, 2020.
"Special management measures for foreign investment access (negative list) (2019 version)" and "Special management measures for foreign investment access (free list) (2019 version)" in the Pilot Free Trade Zone are simultaneously abolished.
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.
The National Development and Reform Commission and the Ministry of Commerce will work with all regions and departments to implement the 2020 version of the Negative List of Foreign Investment Admissions in accordance with the requirements of the Foreign Investment Law and its implementation regulations, and give equal treatment to domestic and foreign companies outside the negative list. Improve the construction of an open economic system and maintain national security in the process of expanding opening up.