Negative list facilitates foreign investment
From July 28, the negative list, which identifies sectors and businesses that are off-limits or restricted from foreign investment, will be implemented nationwide, according to the Catalogue of Industries for Guiding Foreign Investment (2017 Revision), jointly issued by the National Development and Reform Commission and the Ministry of Commerce. The document includes the negative list as well as sectors and industries that the government wants to encourage foreign companies to invest in. The guideline said that China will use a “negative list” management approach for all foreign investment, open up more sectors and further relax restrictions for foreign businesses. The new catalogue shortened the list of sectors that completely ban foreign investment from 36 to 28. Sectors that are off-limits to foreign investors include air traffic control and compulsory education institutes.