China News Agency, Beijing, June 24 (Reporter Zhou Rui) The National Development and Reform Commission of China announced on the 24th that the agency and the Ministry of Commerce of China have recently 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)", which will take effect on 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.
The National Development and Reform Commission pointed out that since 2020, the new coronary pneumonia epidemic has had a huge impact on global transnational investment and the world economy has been severely affected. The release of the 2020 version of the Negative List of Foreign Investment Admissions is an important measure for the implementation of greater scope, wider fields, and deeper comprehensive opening up, demonstrating China’s unwavering determination to support economic globalization and transnational investment, which will further improve the foreign investment environment To promote high-quality economic development at a higher level.
It is reported that 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.
There are three major changes in this revision:
One is to speed up the process of opening up 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 stated that it 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. The construction of a new economic system will safeguard national security in the process of opening up. (Finish)