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On 23 June 2020, the National Development and Reform Commission and the Ministry of Commerce released the <Special Administrative Measures (Negative List) for the Access of Foreign Investment (2020)> (Negative List). According to the Negative List, from 23 July 2020 onward, the restrictions on foreign investments in securities, futures, life insurance, commercial vehicle manufacturing, and the construction and operation of water supplies and drainage networks in cities with a population of more than 500,000 shall be lifted.20206242020202072350
This amendment further reduces the negative list of foreign investment access. This is the fourth consecutive year that China has revised the negative list with regards to foreign direct investment in the country since 2017.2017
Compared to the 2019 edition, the restriction on the Negative List of 2020 have been reduced from 40 to 33. The level of openness in the services, manufacturing and agricultural sectors has been further improved.The highlights are as follows:201920204033,  Accelerating the process of opening up key services areas:In the financial sector, China will scrap foreign shareholder limits in securities companies, fund houses, futures companies and life insurance firms.In the infrastructure sector, the requirement that the construction and operation of water supply and drainage networks in cities with a population of more than 500,000 must be controlled by Chinese investors shall be removed.:50
Easing market access restriction in manufacturing and agriculture sectors:In the manufacturing sector, liberalize the restrictions on foreign-fundedshare ratios in the manufacture of commercial vehicles and scrap a ban onforeign investments into companies that smelt and process radioactiveresources and produce nuclear fuel.In the agricultural sector, for the selection and seed production of newwheat varieties, a majority Chinese shareholder is not required anymore, as long as Chinese shareholders own not fewer than 34% of the equity.:34%
On the same day, the <Special Administrative Measures (Negative List)for the Access of Foreign Investment in Pilot Free Trade Zones (2020)> was released too, the entries in the Negative List were also reduced from 37 to 30.20203730
According to the amended Negative List, In the medicine sector, the prohibition of foreign investments into Chinese medicine have been removed. In the education sector, wholly foreign-owned vocational education institutions are allowed to be established.


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Newly Released Negative List

Tap "LegalTips"

to follow us

Related articles:Master Plan Unveiled for Hainan Free Trade Port
Individual Insolvency Law in Shenzhen
I Want My Equity Back!
On 23 June 2020, the National Development and Reform Commission and the Ministry of Commerce released the <Special Administrative Measures (Negative List) for the Access of Foreign Investment (2020)> (Negative List). According to the Negative List, from 23 July 2020 onward, the restrictions on foreign investments in securities, futures, life insurance, commercial vehicle manufacturing, and the construction and operation of water supplies and drainage networks in cities with a population of more than 500,000 shall be lifted.20206242020202072350
This amendment further reduces the negative list of foreign investment access. This is the fourth consecutive year that China has revised the negative list with regards to foreign direct investment in the country since 2017.2017
Compared to the 2019 edition, the restriction on the Negative List of 2020 have been reduced from 40 to 33. The level of openness in the services, manufacturing and agricultural sectors has been further improved.The highlights are as follows:201920204033,  Accelerating the process of opening up key services areas:In the financial sector, China will scrap foreign shareholder limits in securities companies, fund houses, futures companies and life insurance firms.In the infrastructure sector, the requirement that the construction and operation of water supply and drainage networks in cities with a population of more than 500,000 must be controlled by Chinese investors shall be removed.:50
Easing market access restriction in manufacturing and agriculture sectors:In the manufacturing sector, liberalize the restrictions on foreign-fundedshare ratios in the manufacture of commercial vehicles and scrap a ban onforeign investments into companies that smelt and process radioactiveresources and produce nuclear fuel.In the agricultural sector, for the selection and seed production of newwheat varieties, a majority Chinese shareholder is not required anymore, as long as Chinese shareholders own not fewer than 34% of the equity.:34%
On the same day, the <Special Administrative Measures (Negative List)for the Access of Foreign Investment in Pilot Free Trade Zones (2020)> was released too, the entries in the Negative List were also reduced from 37 to 30.20203730
According to the amended Negative List, In the medicine sector, the prohibition of foreign investments into Chinese medicine have been removed. In the education sector, wholly foreign-owned vocational education institutions are allowed to be established.


Tap "Read More" to visit our website

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