China loosens curbs on foreign investment with new ‘negative list’ | South China Morning Post

Beijing says it has reduced the number of sectors subject to restrictions, after agreement with Washington to restart trade talks.

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The previous nationwide negative list jointly issued on June 28, 2018 by the National Development and Reform Commission (NDRC) and the Ministry of Commerce, widened market access for foreign investors to 22 industries, with the number of items included in the negative list reduced to 48 from 63.

The negative list for nationwide implementation just announced reduces further the number of items to 40 from the 48 and the negative list for free trade zones to 37 items, down from 45.

In its 2018 edition of the negative list China liberalized the services sector, including banking, securities and insurance sectors. Further it opened up the manufacturing sector to the foreign investors in all aspects. The restrictions imposed on automotive industries were also reduced. Besides that access to agriculture and energy resource were also relaxed.

According to a news release by NDRC, the move is aimed at not only improving international cooperation but also to boost the country’s development.

Li Gang, director of the academic committee of the Chinese Academy of International Trade and Economic Cooperation, had this to say on the move to opening up:

“Many of the Chinese industries are still at the low to medium level in the global market. So we need to take essential measures to further improve the business environment and expand market access, encourage more foreign investment to usher in advanced manufacturing, modern services and other important sectors.”

He added, “The new negative list will help China foster high-quality growth and innovative economic upgrading."

This time around the services sector sees a wider opening-up with previous restrictions on domestic shipping agencies, gas and heating pipelines, cinemas and performance brokerages being lifted.