2018 Negative List of Foreign Investment Admission to Post New Energy Stocks to Cancel Next Month

Yesterday (June 28), the National Development and Reform Commission and the Ministry of Commerce issued the "Special Foreign Investment Access Control Measures (Negative List) (2018 Edition)", which will take effect on July 28, 2018. The special management measures for foreign investment access (the negative list of foreign investment access) in the Foreign Investment Industrial Guidance Catalogue (Revised in 2017) will be abolished at the same time, and the foreign investment industry catalogue will be encouraged to continue.

The negative list of the 2018 edition was reduced from 63 to 48, and a series of major opening measures were introduced. First, the service industry will be greatly expanded. Second, the manufacturing industry will be basically liberalized. Third, the access to agriculture and energy resources will be relaxed. Among them, the auto industry canceled the restrictions on the foreign-funded shares of special-purpose vehicles and new-energy vehicles. In 2020, the restrictions on foreign-funded shares of commercial vehicles were abolished. In 2022, the restrictions on the foreign-invested shares of passenger vehicles and the restrictions of no more than two joint ventures were eliminated.

When the relevant person in charge of the National Development and Reform Commission answered the reporter's question, the 2018 version of the negative list has three main characteristics: First, the all-round promotion of openness. The first, second and third industries have comprehensively relaxed market access, covering 22 areas such as finance, transportation, trade and circulation, professional services, manufacturing, infrastructure, energy, resources, and agriculture. The second is to substantially reduce the negative list. The 2018 version of the negative list retained 48 special management measures, which was 15 fewer than the 2017 version of 63. With fewer items in the list, the foreign investment approval scope will be further reduced accordingly. The third is to make overall arrangements for the opening of some areas. The negative list of the 2018 edition lists the timetable for opening up road maps to the outside world in the automotive and financial sectors, gradually increasing the degree of opening up, giving certain industries a certain period of transition, and enhancing the predictability of opening.

The following is the full text of the announcement:

The National Development and Reform Commission and the Ministry of Commerce issued

2018 Edition Special Management Measures for Foreign Investment Access (negative list)

In order to carry out the spirit of the important speech delivered by the General Secretary of the Internship at the Boao Forum, the National Development and Reform Commission and the Ministry of Commerce issued the No. 18 Order on June 28th to issue the Special Administrative Measures for Foreign Investment Access (negative List) (2018 edition) (hereinafter referred to as the 2018 version of the negative list), implemented since July 28, 2018. The special management measures for foreign investment access (negative list of foreign investment access) in the "Guidance Catalogue for Foreign Investment Industries (Revised in 2017)" shall be abolished at the same time, and encourage the implementation of the Foreign Investment Industry Catalogue.

This year marks the 40th anniversary of the reform and opening up. The issuance and implementation of the negative list of the 2018 edition is a major measure to implement the Party Central Committee and the State Council's strategy of opening up to the outside world, greatly ease market access, deepen the promotion of high standards, and further improve the pre-entry national treatment plus negative list management system. The new round of opening up will inject new impetus into the expansion of attracting foreign investment, promoting market competition, and enhancing innovation. It will promote high-quality development and deep-seated reforms, and promote the formation of a new pattern of openness in an all-round way, effectively supporting the in-depth development of economic globalization.

The negative list for the 2018 edition was reduced from 63 to 48, and a series of major opening measures were introduced. First, the service industry has been greatly expanded. In the financial sector, the ratio of foreign-capital shares in the banking sector was lifted, and the foreign-capital stock ratios of securities companies, fund management companies, futures companies, and life insurance companies were relaxed to 51%. In 2021, all foreign-capital-equity ratio restrictions in the financial sector were lifted. In the field of infrastructure, the railway trunk line network and grid foreign investment restrictions will be removed. In the area of ​​transportation, the restrictions on foreign investment in railway passenger transportation companies, international maritime transport, and international shipping agencies will be abolished. In the area of ​​commercial and commercial circulation, the restrictions on foreign investment in gas stations and grain purchases and wholesales have been eliminated. In the cultural field, the ban on investing in Internet access service business premises is lifted. The second is to basically liberalize the manufacturing industry. The auto industry has eliminated the restrictions on the ratio of foreign-invested shares of special vehicles and new energy vehicles. In 2020, the ratio of foreign-invested shares in commercial vehicles will be removed. In 2022, the foreign-invested-to-equity ratio of passenger cars will be lifted and the number of joint ventures will not exceed two. The shipping industry cancels foreign investment restrictions, including design, manufacturing, and repair. The aircraft industry has lifted restrictions on foreign capital, including trunked aircraft, regional aircraft, general aircraft, helicopters, drones, and aerostats. The third is to relax access to agriculture and energy resources. In the field of agriculture, the restrictions on foreign investment in the production of crops other than wheat and corn were eliminated. In the field of energy, the foreign investment restrictions on special rare coal mining were abolished. In the field of resources, the foreign investment restrictions on graphite mining, rare earth smelting and separation, and tungsten smelting were eliminated.

The 2018 version of the negative list actively explored and opened up new paths and new models, made overall arrangements for the opening up of the automobile and financial sectors, and implemented continuous opening. It will give certain industries a certain transition period and enhance the predictability of opening.

The 2018 version of the negative list provides a unified list of special management measures such as equity requirements and senior management requirements. Areas outside the negative list shall be managed in accordance with the principle of consistency between domestic and foreign investment. All regions and departments may not specifically limit foreign investment access.