Shorter negative list woos foreign investors

Foreign investors will be given more freedom in the service, manufacturing and agricultural sectors after the release of a new negative list for 2020.

Jointly issued by China’s National Development and Reform Commission and the Ministry of Commerce, the new negative list for foreign investment will be further shortened and improve the level of openness in the service, manufacturing and agricultural sectors, compared with the list from last year, according to NDRC.

Foreign investors in the piloted free trade zones now have 30 listed items, down from 37, and the rest of the country is required to implement 33 items instead of 40.

China will beef up efforts to maintain stable foreign trade and investment, as the COVID-19 pandemic has dealt a heavy blow to the world economy, Commerce Minister Zhong Shan told the media on the sidelines of the annual national legislative session last month.

In the financial sector, foreign ownership caps on brokerage firms, futures companies and life insurance companies would be removed.

The restriction stipulating that China control the water supply and drainage pipelines in cities with a population of more than 500,000 people will also be lifted.

In the field of transportation, the regulations prohibiting foreign investment in air traffic control have been canceled.

In the manufacturing sector, foreign ownership caps on commercial vehicle manufacturing will be lifted, and regulations prohibiting foreign investment in the smelting and processing of radioactive minerals and nuclear fuel production will also be eliminated.

Also, ownership by foreign investors in wheat breeding, seed production would be raised to 66 percent.

The role of FTZs as a pioneer of the country’s reform and opening-up will be further strengthened.

In the field of medicine, the regulations prohibiting foreign investment in traditional Chinese medicine decoction pieces were canceled.

Meanwhile, foreign investors will be allowed to run wholly-owned vocational education institutions.

The new negative list will become effective on July 23.