China News Service, December 27. According to the website of the National Development and Reform Commission, with the approval of the Party Central Committee and the State Council, the National Development and Reform Commission and the Ministry of Commerce issued Decree No. 47 and No. 48 on December 27, 2021, respectively issuing the "Foreign Investment Special Administrative Measures for Access (Negative List) (2021 Edition)" and the "Special Administrative Measures for Foreign Investment Access in Pilot Free Trade Zones (Negative List) (2021 Edition)" will come into effect on January 1, 2022.
The "Special Management Measures for Foreign Investment Access (Negative List) (2020 Edition)" and the "Special Management Measures for Foreign Investment Access in Pilot Free Trade Zones (Negative List) (2020 Edition)" shall be repealed at the same time.
This year marks the beginning of the "14th Five-Year Plan" period and also the 20th anniversary of China's accession to the World Trade Organization.
Further reducing the negative list of foreign investment access is an important measure for China to expand high-level opening up and promote high-quality economic development.
At the same time, it is also a practical action for China to share development opportunities with the world and promote economic globalization toward a more open, inclusive, inclusive, balanced, and win-win direction.
The 2021 version of the Negative List for Foreign Investment Access in the National and Pilot Free Trade Zones has been further reduced to 31 and 27, with reduction ratios of 6.1% and 10% respectively.
Main changes: One is to further deepen the opening up of the manufacturing industry.
In the field of automobile manufacturing, the restriction on the foreign shareholding ratio in passenger car manufacturing and the restriction that the same foreign company can establish two or less joint ventures in the country to produce similar complete vehicle products have been removed.
In the field of radio and television equipment manufacturing, the restrictions on foreign investment in satellite television broadcasting ground receiving facilities and the production of key components shall be cancelled, and the management shall be conducted in accordance with the principle of consistent domestic and foreign investment.
This revision has achieved zero clearing of manufacturing items on the negative list of the Pilot Free Trade Zone.
The second is to explore the relaxation of service industry access in the pilot free trade zone.
In the field of market research, except for radio and television listening and ratings surveys that must be controlled by the Chinese party, restrictions on foreign investment access will be lifted.
In the field of social surveys, foreign investors are allowed to invest in social surveys, but the Chinese shareholding ratio is required to be no less than 67%, and the legal representative should have Chinese nationality.
The third is to improve the accuracy of the negative list for foreign investment access.
In the description of the negative list, add "Domestic companies engaged in businesses in the areas prohibited for investment in the negative list of foreign investment access to issue shares overseas and listed for trading shall be reviewed and approved by relevant state authorities. Foreign investors are not allowed to participate in the management of the enterprise, and their shareholding The proportion shall be implemented in accordance with the relevant regulations on the management of domestic securities investment by foreign investors.” The CSRC and relevant competent authorities shall implement precise management of overseas listing and financing of domestic enterprises engaged in businesses in areas prohibited by the negative list in accordance with regulations.
It should be clarified that "subject to review and approval by relevant national competent authorities" refers to the review and approval of domestic companies' listing of overseas companies that do not apply the prohibitive provisions of the negative list, rather than the review of domestic companies' overseas listing activities.
The fourth is to optimize the management of the negative list of foreign investment access.
In accordance with the "Regulations for the Implementation of the Foreign Investment Law", in the negative list description, "foreign-invested enterprises investing in China shall comply with the relevant provisions of the negative list for foreign investment access".
The Negative List for Foreign Investment Access and the Negative List for Market Access will be well connected, and the “Negative List for Market Access for Domestic and Foreign Investors shall uniformly apply the relevant provisions of the Negative List for Market Access” in the explanation section of the negative list.
The National Development and Reform Commission will work with the Ministry of Commerce and other departments and regions to implement the pre-access national treatment plus negative list management system, implement the 2021 version of the national and pilot free trade zone foreign investment access negative list, and follow the rules for areas outside the negative list. Both domestic and foreign investment shall be managed in unanimous principle, national treatment shall be granted to foreign-invested enterprises, and national security shall be maintained in the process of opening wider to the outside world.