China will use a “negative list” management approach for all foreign investment to open up more sectors and further relax restrictions for foreign businesses, according to Xinhua.
The country's National Development and Reform Commission and Ministry of Commerce jointly issued a revised catalogue today (June 28, 2017), which will take effect on July 28, 2017.
It includes the negative list as well as sectors and industries that the government wants to encourage foreign companies to invest in. The list of sectors that completely ban foreign investment was shortened from 36 to 28.
The negative list will be implemented throughout China from July 28, 2017.
Under the approach, government approvals are not required for most foreign investment and only the negative list remains subject to approval.
The relaxed rules have opened up sectors such as highway passenger transport, processing of certain rare metals, as well as manufacturing of rail transit equipment, and cooking oil.
Sectors that are off-limits include air traffic control and compulsory education institutes.