China shortens its negative list for further opening-up

On June 28, China released a shortened negative list for foreign investment in the country's pilot free trade zones. Shortened from 63 items in the 2017 version to 48 items, the new version of the negative list will take effect on July 28.

According to the negative list, China will widen its opening-up in the service, automobile, shipbuilding, aircraft, agricultural and energy resource sectors by cancelling or reducing the restrictions on the shareholding ratio for foreign investment.

It will remove foreign equity caps on banks and raise foreign equity cap to 51 percent in securities, fund management, futures, and life insurance companies, and the limitations will be completely removed after three years.

It will provide a complete market access for foreign investors in railway lines, power grids, railway passenger transportation, international shipping, petrol stations, food purchasing and wholesale and business sites of Internet access services.

It will remove restrictions on new energy vehicles and special-purpose vehicles, and phase out those on all automotive ventures over the next five years.  

It will allow foreign companies to engage in the design, manufacturing and repair of vessels, as well as the airplane manufacturing of trunk airliners, regional jets, utility aircraft, helicopters, drones and lighter-than-air aircraft.

It will lift the limitations on seed productions except wheat and corn while a maximum 66-percent stake in breeding new wheat and corn varieties and their seed production will be allowed for foreign investors.

Besides, restrictions on the mining of special and scarce coals and graphite, the smelting separation of rare earth, and the tungsten smelting will also be removed.