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2017 Edition of FTZ FDI Negative List Cut Back to 95 Categories

05 July 2017

27 management measures have been removed from the restricted list for foreign direct investment (FDI) within the country’s 11 pilot Free Trade Zones (FTZs), following the publication of the 2017 edition of the State Council’s negative list of sectors for FDI within any of the approved FTZs.

The newly-published negative list consists of 27 fewer special management measures (or entries), grouped under 10 fewer categories. Among the categories that have been removed this year are the manufacturing of railed transport equipment, pharmaceuticals manufacturing, road transport, insurance, accountancy and auditing, as well as a number other commercial services. Overall, the updated list now consists of just 95 entries grouped under 40 categories.

The first negative list for FTZs covered solely the Shanghai Pilot FTZ, the first such facility to be established. Initially, it consisted of 190 restricted measures, but that was reduced to 139 in 2014 and to 122 in 2015. The applicability of the list was also gradually extended from the Shanghai FTZ to the FTZs in Guangdong, Tianjin and Fujian. The 2017 version covers all of the 11 pilot FTZs approved to date.

The new negative list comes into force as of 10 July 2017.

For further details (in Chinese), please refer to the following website:

Circular of the General Office of the State Council on Issuing the Special Management Measures (Negative List) for Foreign Investment Access in Pilot FTZs (2017 version)

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