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China opens up wider in 2021

chinadaily.com.cn | Updated: 2022-01-05 06:40
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Shortening negative lists for foreign investment

An aerial photo taken on May 26, 2021 shows the Yangpu international container port at Yangpu economic development zone in South China's Hainan province. [Photo/Xinhua]

China unveiled two shortened negative lists for foreign investment in December, marking the fifth consecutive year the world's second-largest economy has revised its national negative list and pilot free trade zone negative list.

The number of items off-limits for foreign investors has been cut to 31 in the latest version of the national negative list, down from 33, and the number of items on the pilot FTZ negative list has been reduced to 27 from 30 in the 2020 version.

According to the new lists, foreign ownership caps on passenger car manufacturing companies have been removed. All manufacturing sectors are open to foreign investors in the pilot FTZs.

Foreign investors' access to the service sector in pilot FTZs has also been widened. Foreign investment is allowed in the social survey industry, but ownership by foreign investors should be no more than 33 percent and legal representatives should be of Chinese nationality.

For those industries not included in the negative lists, foreign-invested enterprises should be given equal treatment.

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