China issued new Foreign Investment Negative Lists to further open up the market

July 2020

On 23 June 2020, the National Development and Reform Commission and the Ministry of Commerce jointly issued the Special Measures for Access of Foreign Investment (“FDI Negative List”) and the Special Measures for Access of Foreign Investment in Free Trade Zones (“FTZ Negative List”). Both Negative Lists (collectively as the “2020 Negative Lists”) will take effect on 23 July 2020 to replace the 2019 Negative Lists.

Compared to the 2019 version, the 2020 Negative Lists have cut back the foreign investment restrictions by approximately 20%, with the restricted and prohibited items being reduced from 37 to 30 in the Free Trade Zones, and from 40 to 33 in the rest of China. In some sectors, foreign ownership restriction has been completely removed. Below is a brief summary of key provisions in the 2020 Negative Lists.