{"id":8756,"date":"2021-10-31T07:00:59","date_gmt":"2021-10-31T07:00:59","guid":{"rendered":"https:\/\/focus.cbbc.org\/?p=8756"},"modified":"2025-04-23T09:49:21","modified_gmt":"2025-04-23T09:49:21","slug":"china-releases-draft-revisions-to-market-access-negative-list","status":"publish","type":"post","link":"https:\/\/focus.cbbc.org\/china-releases-draft-revisions-to-market-access-negative-list\/","title":{"rendered":"China releases draft revisions to Market Access Negative List"},"content":{"rendered":"

The Market Access Negative List outlines the areas where investors first need to obtain regulatory approval, a licence, or a permit regardless of whether they’re a foreign or domestic company. This year\u2019s list reduces the number from 123 items to 117<\/h2>\n

Last Friday, China\u2019s National Development & Reform Commission (NDRC) and Ministry of Commerce (MofCom) published draft revisions to the Market Access Negative List (hereafter referred to as \u2018the List\u2019). The List should not be confused with the Foreign Investment Negative List.<\/p>\n

The List is usually officially published in December and outlines the rules for investment in various sectors for all market entities, including state-owned enterprises (SOEs), private companies, joint venture partnerships (JVs) and wholly foreign-owned enterprises (WFOEs). Each year, NDRC and MofCom divide the list into two categories, \u2018prohibited\u2019 and \u2018restricted\u2019 markets \u2014 this year\u2019s edition is no different.<\/p>\n

\"launchpad<\/a><\/p>\n

The industries listed as \u2018prohibited\u2019 are all off-limits to market actors, meaning that firms are not allowed to invest, partner or takeover any entity involved in that particular industry. This year\u2019s list has attracted more attention than usual in foreign media because news collection, editing and broadcasting could become a prohibited industry. It is worth noting that items listed under \u2018prohibited\u2019 are usually ostensibly related to government activity or national security.<\/p>\n

This year\u2019s list has attracted more attention than usual in foreign media because news collection, editing and broadcasting could become a prohibited industry<\/p><\/blockquote>\n

Sectors determined to be \u2018restricted\u2019 are open to investment but only under the condition that the investor applies for access from whichever ministry oversees that particular industry. Industries considered \u2018restricted\u2019 include motor vehicle production and hotel management, to provide two examples. Foreign and domestic investors alike can assume that any area not covered by the list is open to investment and that there is no need to seek prior approval.<\/p>\n

The 2021 draft sees the number of industries where involvement is either restricted or prohibited cut from 123 items in 2020 to 117. While that suggests that China\u2019s economy is becoming more open, investors must consult the Market Access Negative List alongside the Foreign Investment Negative List and the Free Trade Zone Negative List for Foreign Investment, and these frequently contradict one another. As a result, the list does not appear to open China\u2019s economy further to foreign investors as much as might be expected.<\/p>\n