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ARTICLE · 02 OCTOBER 2020

New Openings For Foreign Investment In China

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In the year of the coronavirus, China continues to surprise us with a series of reforms, long awaited and urged, and now finally approved quite on the sly.

ChinaGovernment, Public Sector
Hermes Pazzaglini
Hermes Pazzaglini

In the year of the coronavirus, China continues to surprise us with a series of reforms, long awaited and urged, and now finally approved quite on the sly. After the promulgation of the Foreign Investment Law and the new Civil Code, on 23 June 2020 the National Development and Reform Commission and the Ministry of Commerce of the People's Republic of China promulgated the 2020 edition of the Special Administrative Measures (Negative List) for Foreign Investment Access.

The negative list contains the areas of restriction on foreign investment in the People's Republic of China, and has been promulgated so far every year. Already in 2019, China reduced the sectors in which foreign investment is restricted from 48 to 40. The 2020 edition further reduces the number of restricted sectors to 32, divided into 12 categories. Article 1 of the notes to the negative list expressly states that Chinese and foreign-owned enterprises are treated equally in sectors not listed.

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