Foreign Investment in China CBM Industry – Restrictions Removed
On 30 June 2019, the National Development and Reform Commission and the Ministry of Commerce jointly issued the Special Administrative Measures (Negative List) for Foreign Investment Access (2019 Edition), the Special Administrative Measures (Negative List) for Foreign Investment Access in Pilot Free Trade Zones (2019 Edition) and the Catalogue of Encouraged Industries for Foreign Investment (2019 Edition) for the purposes of further promoting the reform and opening-up of the service industry, relaxing the restrictions on the access to the mining, agricultural and manufacturing industries, and continuing to facilitate Free Trade Zones’ role of the opening-up test field . These new policies will take effect on and from 30 July 2019. The 2019 Negative List delivers clear message to the market that the Chinese government encourages foreign investors to participate in the development of oil and gas resources, including coalbed methane (“CBM”). To achieve such purpose in a meaningful way, a timely reform of the regulatory regimes concerning PSCs and the granting of CBM mineral rights should indeed be put as a priority item on the reform agenda of the relevant Chinese government authorities.