Expanding a high-level opening to the outside world and promoting high-quality economic development-the relevant person in charge of the National Development and Reform Commission answers reporters' questions on the 2021 version of the negative list of foreign investment access
On December 27, 2021, the National Development and Reform Commission and the Ministry of Commerce issued the "Special Administrative Measures for Foreign Investment Access (Negative List) (2021 version)" and the "Special Management Measures for Foreign Investment Access (Negative List) in Pilot Free Trade Zones" (2021 edition)".
In order to understand the revision of the 2021 negative list of foreign investment access, the reporter interviewed the relevant person in charge of the National Development and Reform Commission in response to issues of concern from all walks of life.
Question: Please introduce the background of the 2021 negative list for foreign investment access.
Answer: The Party Central Committee and the State Council attach great importance to opening up to the outside world.
In recent years, my country has deeply promoted high-level opening up to the outside world, and has continued to relax foreign investment access.
From 2017 to 2020, the Negative List of National and Pilot Free Trade Zones has been revised for four consecutive years. Special management measures for foreign investment have been reduced from 93 and 122 to 33 and 30, respectively. A number of major issues have been introduced in the fields of finance and automobile. The opening up measures provide a broader development space for foreign investment.
In January 2020, the Foreign Investment Law and its implementing regulations will be implemented to fully implement the pre-admission national treatment plus negative list management system for foreign investment, strengthen foreign investment promotion, protect the legitimate rights and interests of foreign investment, and optimize the foreign investment environment.
In 2020, against the backdrop of a sharp decline in global cross-border investment, my country has attracted US$149.34 billion in foreign investment, which is steadily increasing, maintaining the second place in the world.
Currently, opening to the outside world is facing a new situation.
From a domestic perspective, my country has shifted to a stage of high-quality development, with overall stable economic operations and continuous optimization of the economic structure, but it also faces many new situations and challenges.
From an international perspective, a century of changes in the world are intertwined with the epidemic of the century, unilateralism and protectionism are on the rise, and economic globalization is encountering a countercurrent.
Facing the new situation, we will base ourselves on the new development stage, implement the new development concept, build a new development pattern, promote the implementation of wider, broader, and deeper opening up to the outside world, and promote high-quality development with high-level opening.
General Secretary Xi Jinping emphasized at the opening ceremony of the Boao Forum for Asia 2021 annual meeting that the foreign investment law and related supporting regulations must be fully implemented, and the negative list of foreign investment access will continue to be reduced.
Premier Li Keqiang pointed out in this year's government work report that it is necessary to actively and effectively utilize foreign investment and further reduce the negative list of foreign investment access.
In order to implement the decisions and deployments of the Party Central Committee and the State Council, the National Development and Reform Commission, together with the Ministry of Commerce and other departments, revised and released the 2021 version of the negative list for foreign investment access, and continued to expand opening up to the outside world.
Question: Please introduce the main considerations for revising the 2021 version of the negative list for foreign investment access.
Answer: The general direction of the revision and introduction of the 2021 version of the negative list for foreign investment access is to further increase the level of opening up, improve the pre-foreign investment access national treatment plus negative list management system, and promote investment liberalization and facilitation.
The main principles to follow: First, coordinate development and security, further expand opening to the outside world, and the intensity of opening to the outside world is commensurate with national security and regulatory capabilities.
The second is to learn from internationally accepted rules, and in principle, areas where risks can be prevented and controlled through foreign investment security reviews and consistent domestic and foreign investment management measures are not included in the negative list in principle.
The third is to give full play to the role of the pilot free trade zone in reform and opening up, and continue to expand and open up to take precedence.
The fourth is to maintain national security, and continue to retain foreign investment restrictions in sensitive areas involving national political security and ideological security.
Q: Compared with the 2020 version, what are the main changes in the 2021 version of the negative list for foreign investment access?
Answer: The 2021 version of the negative list for foreign investment access has further shortened the length, improved the management system, and improved the accuracy.
The negative lists of the national and pilot free trade zones were further reduced to 31 and 27, with reduction ratios of 6.1% and 10% respectively.
The main changes are:
(1) 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.
(2) The pilot free trade zone explores the relaxation of service industry access.
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.
(3) 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.
(4) Optimize the management of the negative list for 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".
In order to make the Negative List of Foreign Investment Access and the Negative List of Market Access a good link, the "Negative List of Market Access" has been added to the explanation section of the negative list.
Question: How do you understand the provisions on improving the accuracy of the negative list of the 2021 version of the Negative List for Foreign Investment Access?
Answer: In the 2021 version of the Negative List of Foreign Investment Admissions, the explanation section has added "Domestic companies engaged in businesses in the areas prohibited by the Negative List of Foreign Investment Admissions to issue shares overseas and list for trading shall be reviewed and approved by the relevant competent authorities of the country, and foreign investors shall not Participate in the business management, and its shareholding ratio shall be implemented in accordance with the relevant regulations on the management of domestic securities investment by foreign investors.
This provides policy space for domestic companies engaged in businesses that are prohibited from investing in the negative list to list overseas, and is a specific measure to improve the accuracy and inclusiveness of the management of the negative list for foreign investment.
At the same time, it is clarified that such enterprises need to meet the two conditions that foreign capital does not participate in the operation and management of the enterprise and that the share ratio meets the requirements for overseas listing, which reflects the requirements for overall development and safety.
Distinguish between stock and increment. For individual stock overseas listed companies that have exceeded the proportion of foreign shareholding, it is not required to reduce the number of issued overseas shares or the amount of A shares held by foreign capital.
In the above clauses, "subject to review and approval by relevant national competent authorities" refers to the review and approval of domestic companies' listing of overseas companies not applicable to the prohibition of the negative list, rather than the review of domestic companies' overseas listing activities.
The state supports enterprises to select international and domestic markets for financing in accordance with laws and regulations to achieve healthy and sustainable development.
The “Regulations on the Administration of Domestic Securities Investment by Foreign Investors” refers to the relevant regulations for foreign investors investing in the domestic securities market through Qualified Foreign Institutional Investors (QFII), Renminbi Qualified Foreign Institutional Investors (RQFII), stock market interconnection mechanisms, and other relevant regulations.
The current regulations require that the investment proportion of a single foreign investor and its affiliates should not exceed 10% of the company's total shares, and the total investment proportion of all foreign investors and their affiliates should not exceed 30% of the company's total shares.
For companies that are engaged in businesses in areas prohibited by the negative list that are simultaneously listed at home and abroad, foreign investors hold the combined domestic and overseas listed shares of the same company.
Question: According to the new regulations on the negative list for foreign investment access in the 2021 edition, how can domestic companies engaged in businesses in areas prohibited by the negative list for foreign investment access apply for overseas issuance and listing?
Answer: The supervision of overseas issuance and listing of domestic enterprises is led by the China Securities Regulatory Commission.
After a domestic enterprise submits its overseas listing application materials to the China Securities Regulatory Commission, the China Securities Regulatory Commission will solicit opinions from the competent authorities of the industry or related fields, and advance relevant regulatory procedures in accordance with regulations, if it involves areas prohibited by the negative list of foreign investment access.
For specific information, companies can consult the China Securities Regulatory Commission for further information.
Question: Please tell us how to ensure the implementation of the 2021 negative list of foreign investment access?
Answer: The 2021 negative list for foreign investment access will be implemented on January 1, 2022.
If the current regulations need to be adjusted, the relevant departments shall complete the relevant adjustments within 2 years in accordance with the procedures.
The National Development and Reform Commission will work with the Ministry of Commerce and other departments and localities to strictly follow the requirements of the Foreign Investment Law and Implementation Regulations to effectively implement the negative list of foreign investment access to ensure that the new opening-up measures are implemented in a timely manner.
For areas outside the negative list, management shall be conducted in accordance with the principle of internal and external consistency, and foreign-invested enterprises shall be given national treatment.
At the same time, we will do a good job in the prevention and control of risks in newly opened areas to maintain national security.