The New “Negative List”for Foreign Investment
The Catalogue for the Guidance of Foreign Investment Industries (2017 Revision) (the “2017 Catalogue“) was issued by the National Development and Reform Commission and the Ministry of Commerce on 28 June 2017. It will come into force on 28 July 2017 and the Catalogue for the Guidance of Foreign Investment Industries (2015 Revision) (the “2015 Catalogue“) will be abolished therefrom. Changes between the 2017 Catalogue and the 2015 Catalogue are mainly in two areas, namely structural adjustment by implementation of a “negative list”and fewer restrictions with more opening up. The 2017 Catalogue, together with the Special Administrative Measures (Negative List) for the Entry of Foreign Investment to Pilot Free Trade Zones (2017 Version) issued in early June, shows the Chinese government’s intention to open further, to use foreign capital actively and to improve the foreign investment environment. By implementing the management model of pre-establishment national treatment with a negative list, new vigor and vitality will be brought to the development and growth of Chinese economy. The 2017 Catalogue has several new items in the encouraged category such as Foods for Special Medical Purposes, Virtual Reality and Augmented Reality (AR) equipment, and key functional parts of Three-dimensional printers. It’s easy to see that innovation-driven development and structural optimization of industries will be important in improving the competitiveness of Chinese manufacturing in the new era.