The pilot operation of market access negative list in Shanghai, Guangdong, Tianjin and Fujian free trade zones started as of December 1 and is expected to continue two years and end on December 31, 2017. And based on the experience summary and system improvement, a nationwide unified market access negative list system will be officially carried out as of 2018.

 

The market access negative list to be operated as of December 1, consisting of the prohibition of access and restricted access, is applicable for investment financing activities like market entities volunteer independent investment, investment expansion and M&A investment and other marketized financing activities.

 

As for those included in the prohibition of access, administrative institutions should not give examinations and approvals nor transact relevant procedures. As for those included in the restricted access, some can gain access through examinations and approvals, and some can gain access through qualifying stipulated conditions and modes.

 

The introduction of negative list from investment agreement to domestic economic management is a major system innovation, said Tong Daochi, assistant to Minister of Commerce. Upon the implementation of negative list, various market entities will enjoy equal treatment, and have legal and equal market access to those sectors not on the negative list. Thus, governmental approval and enterprise burden will be drastically reduced to release market vitality and give play of market’s decisive role in resource distribution.

 

The negative list implemented in the said four free trade zones was an independent product and an attempt of China in foreign investment management, Tong added. Based on the negative list implementation in Shanghai Pilot Free Trade Zone, the 139-article list was further shortened to 122 articles. Great achievements have been made. Some new progresses are also made in manufacturing, shipping, commerce and other sectors. The negative list for free trade zones has been under continuous improvement. It is also an experience exploration process for the upcoming nationwide negative list management for foreign investment.

 

Translated from Invest Guangzhou, Dec. 1, 2015