China Goes Negative

Going Negative
A “negative list” names areas and sectors in which foreign investment is barred. Those not listed are fully accessible. Investors in these unlisted areas can obtain pre-entry national treatment (PENT), meaning that they will be accorded the same status and privileges of a domestic company before entering China.

China Daily: Negative list for foreign investment expanded to inland regions
The negative list method was first adopted in the China (Shanghai) Pilot Free Trade Zone after it opened in 2013. Free trade zones were subsequently launched in Guangdong, Tianjin and Fujian, and they too adopted negative lists.

Xu Shanchang, director of economic system reform at the National Development and Reform Commission, said on Friday the practice will be expanded from the coastal regions to inland areas.

Yibada: Xi Pledges to Cut Restrictions on China's Market
Beijing is set to “substantially cut back” restrictions on foreign investment to enter the Chinese market and build an economy with an even higher level of openness, President Xi Jinping said in a regional business gathering on Wednesday, Nov. 18, amid global concerns over China’s slowing growth.

Next month an expanded pilot begins in the four cities, which should last two years, after which the program will be rolled out nationally. EO: 下月起,中国试行负面清单

Great news for the long-term, if it is fully implemented.

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