The national development and Reform Commission and the Ministry of Commerce issued the 2021 negative list of foreign investment access to further deepen the opening of the manufacturing industry

Cailian news agency, Dec. 27 - the national development and Reform Commission and the Ministry of Commerce issued orders No. 47 and No. 48 on December 27, 2021, respectively, issuing the Special Administrative Measures for foreign investment access (negative list) (2021 version) and the Special Administrative Measures for foreign investment access in the pilot free trade zone (negative list) (2021 version), which will come into force on January 1, 2022. In the 2021 version, the negative list of foreign investment access in China and the pilot free trade zone was further reduced to 31 and 27, with the reduction ratio of 6.1% and 10% respectively. Main changes: first, further deepen the opening of manufacturing industry. In the field of automobile manufacturing, the restrictions on the proportion of foreign shares in passenger car manufacturing and the establishment of two or less joint ventures producing similar vehicle products in China by the same foreign investor shall be abolished. In the field of radio and television equipment manufacturing, the restrictions on foreign investment in the production of satellite television broadcasting ground receiving facilities and key parts shall be abolished and managed in accordance with the principle of consistency between domestic and foreign investment. This revision has cleared the manufacturing items in the negative list of the pilot free trade zone. Second, the pilot Free Trade Zone explores relaxing the access of service industry. In the field of market research, except that the radio and television listening and viewing investigation must be controlled by the Chinese party, the restrictions on foreign investment access shall be abolished. In the field of social investigation, foreign investment in social investigation is allowed, but the Chinese share ratio is required to be no less than 67%, and the legal representative shall have Chinese nationality. Third, improve the accuracy of the negative list of foreign investment access. In the description of the negative list, add "if a domestic enterprise engaged in the business in the investment field prohibited by the negative list of foreign capital access issues shares abroad and is listed for trading, it shall be examined and approved by the relevant competent authorities of the state, and the foreign investor shall not participate in the enterprise operation and management, and its shareholding ratio shall be implemented with reference to the relevant provisions on the administration of domestic securities investment of foreign investors", The CSRC and relevant competent departments shall implement precise management on overseas listing and financing of domestic enterprises engaged in businesses prohibited by the negative list in accordance with regulations. It should be noted that "it shall be examined and approved by the relevant competent authorities of the state" refers to the examination and approval that domestic enterprises are not applicable to the prohibitive provisions of the negative list for overseas listing, rather than the examination and approval of the activities of domestic enterprises for overseas listing. Fourth, optimize the management of the negative list of foreign investment access. According to the regulations for the implementation of the foreign investment law, add "foreign invested enterprises investing in China shall comply with the relevant provisions of the negative list of foreign investment access" in the description of the negative list. Do a good job in linking the negative list of foreign capital access with the negative list of market access, and add "relevant provisions of the negative list of market access shall be uniformly applicable to domestic and foreign investors" in the description of the negative list.