Negative List

2019 Edition

“Special Administrative Measures for Admission of Foreign Investment (Negative List)” (The following is a summary of the “Negative List of Foreign Investment Access”) lists the requirements of equity and senior management in a unified way.

 

1.

Special administrative measures for foreign investment access.

“Negative List of Foreign Investment Access”

Outside the field, in accordance with the principle of consistency between domestic and foreign investment management.

The “Negative List of Foreign Investment Access” lists the cancellation or release of some areas

2.

During the transitional period of wide access restrictions, System.

After the expiration of the transition period, the admission limit will be cancelled or relaxed on time.

3.

Overseas investors shall not be as individual industrial and commercial households, Investment in sole proprietorship enterprises

People, members of farmers’ professional cooperatives, engaged in investment and business activities.

4.

Foreign investors are not allowed to invest in the “negative list of foreign investment access”

Areas of foreign investment;Investment Not Prohibited in “Negative List of Foreign Investment Access”

In the field of investment, foreign investment permission is required; Invest in areas with equity requirements.

cannot

The establishment of foreign investment partnership enterprises.

5.

Domestic companies, enterprises or natural persons with its legal establishment or control outside the country

Mergers and acquisitions of domestic companies related to the company involve foreign investment projects and enterprises.

The establishment and change of matters shall be handled in accordance with the current regulations.

6.

Culture and finance not listed in the “negative list of foreign investment access”

Domain and administrative examination and approval, qualification conditions, national security and other related measures, in accordance with the existing provisions

Execute.

7.

Renewed agreement,

“Mainland and Hong Kong Closer Economic Partnership Arrangement” and Beyond

“Mainland and Macao Closer Economic Partnership Arrangement” and Beyond

The Framework Agreement on Cross-Strait Economic Cooperation and Its Subsequent Agreements

Free Trade Area Agreements and Investment Agreements Signed by Relevant Countries, International Articles Joined by China

If there are more preferential opening measures for qualified investors, the relevant agreements or agreements shall be followed.

The provisions of the implementation.In the free trade test area and other special economic regions to meet the conditions

If investors implement more preferential opening measures, the relevant provisions shall be followed.

The “Negative List of Foreign Investment Access” is jointly issued by the Development and Reform Commission and the Ministry of Commerce.

8.

Relevant departments are responsible for interpretation.

Special Administrative Measures for Admission of Foreign Investment (Negative List) (2019 Edition)

Special management measures

Agriculture, forestry, animal husbandry and fishery

  • Breeding of new wheat and corn varieties and seed production shall be controlled by China.
  • It is forbidden to invest in the research and development, breeding, planting and production of related propagation materials (including excellent genes in planting, animal husbandry and aquaculture) of rare and unique precious and excellent varieties in China.
  • It is forbidden to invest in the breeding of genetically modified varieties of crops, livestock and poultry, aquatic fingerlings and the production of genetically modified seeds (seedlings).
  • Investment in fishing for aquatic products in waters under China’s jurisdiction and inland waters is prohibited.

Mining

Investment in rare earth, radioactive minerals and tungsten exploration, mining and beneficiation are prohibited.

Manufacturing

  • Printing of publications shall be controlled by China.
  • It is forbidden to invest in the smelting and processing of radioactive minerals and the production of nuclear fuel.
  • It is forbidden to invest in the application of processing technologies such as steaming, frying, roasting and calcining of Chinese herbal pieces and the production of proprietary Chinese medicine confidential prescription products. Production.
  • Apart from special purpose vehicles and new energy vehicles, the Chinese share ratio for the manufacture of complete automobiles shall not be less than 50%, and the same foreign investor may establish two or less joint ventures in China to produce similar complete automobiles.(In 2020, the foreign capital stock ratio limit for commercial vehicle manufacturing will be lifted.In 2022, the restriction on the share ratio of foreign capital for passenger car manufacturing and the restriction that the same foreign investor may establish two or less joint ventures in China to produce similar vehicle products will be lifted)
  • Satellite television broadcasting ground receiving facilities and production of key components.

Electricity, heat, gas and water production and supply industry

  • The construction and operation of nuclear power plants must be controlled by China.
  • The construction and operation of urban water supply and drainage networks with a population of more than 500,000 shall be controlled by the Chinese side.

Wholesale and retail trade

It is forbidden to invest in the wholesale and retail of tobacco leaves, cigarettes, redried tobacco leaves and other tobacco products.

Transportation, warehousing and postal services

  • Domestic water transport companies must be controlled by China.
  • Public air transport companies shall be controlled by the Chinese side, and the proportion of investment by a foreign investor and its affiliated enterprises shall not exceed 25%, and the legal representative shall be a Chinese citizen.
  • The legal representative of General Airlines shall be a Chinese citizen, of which General Airlines of Agriculture, Forestry and Fishery are limited to joint ventures and other General Airlines are limited to Chinese holding.
  • The construction and operation of civil airports must be controlled by China.
  • Investment in air traffic control is prohibited.
  • It is forbidden to invest in domestic express delivery of postal companies and letters.

Information transmission, software and information technology services

  • Telecom companies: limited to the telecom services that China has promised to open after entering WTO, the foreign capital share ratio of value-added telecom services shall not exceed 50% (except e-commerce, domestic multi-party communication, store-and-forward and call center), and the basic telecom services shall be controlled by China.
  • It is forbidden to invest in Internet news and information services, Internet publishing services, Internet audio-visual program services and Internet cultural classics. Camp (except music) and Internet public information service (except for the above services that have been opened in China’s WTO accession commitments).

Financial Industry

  • The ratio of foreign shares of securities companies shall not exceed 51%, and the ratio of foreign shares of securities investment fund management companies shall not exceed 51%. (Cancellation of Foreign Stock Ratio Limit in 2021)
  • The foreign capital stock ratio of futures companies shall not exceed 51%.(Cancellation of Foreign Stock Ratio Limit in 2021)
  • The ratio of foreign capital shares of life insurance companies shall not exceed 51%. (Cancellation of Foreign Stock Ratio Limit in 2021)

Rental and Business Services

  • It is forbidden to invest in China’s legal affairs (except providing information on the impact of China’s legal environment) and to become a partner in a domestic law firm.
  • Market research is limited to joint ventures and cooperation, in which radio and television listening and viewing surveys must be controlled by China.
  • Investment in social surveys is prohibited.

Scientific research and technology services

  • It is forbidden to invest in the development and application of human stem cells and gene diagnosis and treatment technologies.
  • Investment in humanities and social sciences research institutions is prohibited.
  • Investment in geodesy, marine surveying and mapping, surveying and mapping aerial photography, ground movement surveying, surveying and mapping of administrative boundaries, topographic maps, maps of world administrative regions, maps of national administrative regions, maps of provincial and lower administrative regions, national teaching maps, local teaching maps, true threedimensional maps and navigation electronic maps, regional geological mapping, mineral geology, geophysics, geochemistry, hydrogeology, environmental geology, geological disasters, remote sensing geology and other investigations are prohibited.

Education

  • Pre-school, ordinary high school and higher education institutions are limited to Sino-foreign cooperation in running schools and must be led by China (principals or chief administrative officers shall have Chinese nationality, and the number of Chinese members of the board of directors, the board of directors or the joint management committee shall not be less than 1/2).
  • Investment in compulsory education institutions and religious education institutions is prohibited.

Health and Social Work

  • Medical institutions are limited to joint ventures and cooperation.

Culture, Sports and Entertainment

  • Investment in news agencies (including but not limited to news agencies) is prohibited.
  • It is forbidden to invest in the editing, publishing and production of books, newspapers, periodicals, audio-visual products and electronic publications.
  • It is forbidden to invest in radio stations (stations), television stations (stations), radio and television channels (rates) and radio and television transmissions at all levels. Transmission and coverage networks (transmitting stations, relay stations, radio and television satellites, satellite uplink stations, satellite receiving and transmitting stations, microwave stations, monitoring stations and cable radio and television transmission and coverage networks, etc.) prohibit the installation of radio and television video-on-demand services and satellite television terrestrial reception facilities.
  • It is forbidden to invest in companies that produce and operate radio and television programs (including imported businesses).
  • It is forbidden to invest in film production companies, distribution companies, cinema companies and film import businesses.
  • Auction companies, cultural relics shops and state-owned cultural relics museums that are prohibited from investing in cultural relics auction.
  • It is forbidden to invest in artistic performance groups.