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ARTICLE · 28 DECEMBER 2017

The 2017 ‘Negative List' Has Been Officially Issued

IPO Pang Xingpu
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China's infamous attempt at exercising control over its inbound foreign investments is embodied by the yearly issuance of the Catalogue for the Guidance of Foreign Investment Industries (the Catalogue).

ChinaGovernment, Public Sector
Cathy Deng
Cathy Deng

China's infamous attempt at exercising control over its inbound foreign investments is embodied by the yearly issuance of the Catalogue for the Guidance of Foreign Investment Industries (the Catalogue). For many years, this Catalogue listed encouraged industries where foreign investments were encouraged along with a list of industries where foreign investment was either restricted or prohibited (The Negative List). Up until this year, foreign investors had to take the list of encouraged industries for investments as the basis for their investments. However, with the 2017 revision to the Catalogue, the Ministry of Commerce announced that unless an industry is included in the Negative List, foreign investment to that industry shall be permitted. This announcement hinted that the PRC is taking steps to opening up its market even more to foreign investment. This hint was confirmed when the new catalogue was officially published (only in Chinese for now) a few days ago.

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