China's National Development and Reform Commission (NDRC)
and Ministry of Commerce (MOFCOM) as expected published three lists
on foreign investment on June 30: a revised negative list
applicable to the country as a whole (the 2019 Negative List); a
revised and less restrictive negative list applicable to
China's pilot free trade zones (the 2019 FTZ Negative List);
and a list of sectors in which foreign investment is encouraged,
i.e., eligible for investment preferences as a general rule (the
2019 Encouraged List). The three new lists replace earlier
editions, i.e., the 2018 negative lists and the 2017 encouraged
list, respectively, and all take effect on July 30, 2019. The 2019
Encouraged List is divided into two parts: the first applicable
throughout the country, and the second applicable on a
province-by-province basis to the less-developed central and
western regions of the country, which now applies to the northeast
region as well.
