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ARTICLE · 13 SEPTEMBER 2018

China's Government Issues New Negative List For Foreign Investment

On 28 June, 2018, the NDRC and the Ministry of Commerce of the People's Republic of China jointly issued the Special Administrative Measures on Access to Foreign Investment (the "Negative List") (2018 Version).

ChinaGovernment, Public Sector

On 28 June, 2018, the National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOFCOM) of the People's Republic of China (PRC) jointly issued the Special Administrative Measures on Access to Foreign Investment (the "Negative List") (2018 Version). Effective on July 28, 2018, the Negative List supersedes the Foreign Investment Industry Guidance Catalogue (2017 Version) (the "2017 Catalogue").

Background

The first Foreign Investment Industry Guidance Catalogue (the "Catalogue") was promulgated by the NDRC and the MOFCOM on June 20, 1995. Since its first promulgation, the Catalogue has gone through eight revisions. Under the 2017 Catalogue, industrial sectors are divided into three categories: "Encouraged", "Restricted" and "Prohibited". Foreign investors are incentivized to invest in the Encouraged sectors and are banned from investing in the Prohibited sectors. Foreign investors are allowed to invest in the Restricted sectors, subject to

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