China adopts new “negative list” management approach for foreign companies

BEIJING - China announced yesterday that it will use a “negative list” management approach for all foreign investment, open up more sectors and further relax restrictions for foreign businesses. State newsagency Xinhua reported that, from July 28, the negative list approach, which identifies sectors and businesses that are off limits or restricted, will be implemented nationwide.

The National Development and Reform Commission (NDRC) yesterday jointly issued a revised foreign investment catalogue, including the negative list as well as sectors and industries that the Government wants to encourage foreign companies to invest in. The new catalogue will also take effect on July 28.

The catalogue also 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.

However, on the whole the negative list will give foreign investors easier access to sectors including China’s highway passenger transport, processing of certain rare metals, as well as manufacturing of rail transit equipment and cooking oil.  www.webershandwick.cn (ATI).