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Nov 25, 2018

China Releases Nationwide Negative List

On 25 December 2018, China released a new negative list for market entrance of 2018, which contains 151 items that companies are banned from accessing or need to acquire a license beforehand, marking the first time China introduced the negative list on a nationwide level. In the new list released by the National Development and Reform Commission (NDRC), the government slightly loosened its grip on certain resource-related industries such as coal and nonferrous metals. China has piloted the negative list scheme in about 15 cities and provinces since 2016. Compared with the 2016 version, the new list is simplified, cutting 177 items in its main body but detailing the restrictive areas in an attached file. The new list is made up of two categories: industries which companies are not allowed to enter and industries where firms must gain certification before conducting relevant business. The banned industries include sectors where Chinese laws prohibit companies from participating, projects that are banned from investment under the Catalogue for Guiding Industry Restructuring, illegal financial activities and illegal internet-related businesses. The industries whose entry requires approval involve 18 industries including manufacturing, transportation and storage, retail and wholesale, finance as well as culture, sports and entertainment. The new list works for all kinds of companies regardless of whether they are State-owned enterprises or private firms, Chinese companies or foreign companies, big or small companies. Foreign companies are still subject to the new negative list for foreign investment which took effect in July 2018.

Type: Entry and establishment (Ownership and control, Approval and admission)

Industry: Not industry specific