With the consent of the Party Central Committee and the State Council, the National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOFCOM) issued Decree No. 47 and Decree No. 48 on December 27, 2021, which promulgated the Special Administrative Measures for Foreign Investment Access (Negative List) (2021 Edition) and the Special Administrative Measures for Foreign Investment Access in the Pilot Free Trade Zone (Negative List) (2021 Edition), respectively, will take effect on January 1, 2022. The Special Administrative Measures for Foreign Investment Access (Negative List) (2020 Version) and the Special Administrative Measures for Foreign Investment Access in the Pilot Free Trade Zone (Negative List) (2020 Version) shall be repealed at the same time.

This year is the beginning of the 14th Five-Year Plan and the 20th anniversary of China's accession to the World Trade Organization. The further reduction of the negative list of foreign investment access is an important step for China to expand its high-level opening and promote high-quality economic development. At the same time, it is also a practical action for China to share development opportunities with the world and promote economic globalization towards more open, inclusive, balanced and win-win development.

The 2021 version of the negative list of foreign investment access for the whole country and the Pilot Free Trade Zone has been further reduced to 31 and 27, with a reduction ratio of 6.1% and 10% respectively. The main changes: First, further opening for the manufacturing sector. In the field of automobile manufacturing, the abolition of restrictions on the ratio of foreign investment in passenger car manufacturing and the same foreign investors can establish two or fewer joint ventures in the domestic production of similar vehicle products. Radio and television equipment manufacturing, the abolition of foreign investment in satellite television broadcasting terrestrial reception facilities and key components of the production of restrictions, in accordance with the principle of consistent management of domestic and foreign investment. The revision zero out the limitation in the manufacturing sector on the negative list for the pilot free trade zone. Second, further relaxing of service sectors in the FTZs. Restrictions on foreign investment in the field of market research have now been lifted. However, radio and television rating surveys must still be controlled by the Chinese party. Foreign investors will now also be allowed to invest in the field of social surveys, but the Chinese shareholding ratio can be no less than 67%, and the legal representative must be a Chinese national. Third, improve the accuracy of the negative list of foreign investment access. The negative lists were released alongside explanatory notes, "Chinese companies engaged in foreign investment access to the negative list of prohibited areas of business must undergo a review and approval process by the government before they can list on a stock market overseas. Foreign investors are also not permitted to participate in the operation and management of these enterprises, and their shareholding ratio must be governed in accordance with the relevant regulations on the management of foreign investment in domestic securities". The SFC and the relevant competent authorities will implement precise management of overseas listing and financing of these domestic enterprises. It should be noted that "shall be subject to the approval of the relevant competent state authorities" refers to the review and approval of domestic enterprises to list abroad without applying the negative list prohibition, rather than the review of the activities of domestic enterprises to list abroad itself. Fourth, optimize the management of the negative list of foreign investment access. According to the Regulations for the Implementation of the Foreign Investment Law, "foreign-invested enterprises investing in China shall comply with the relevant provisions of the negative list of foreign investment access" is added to the description of the negative list. Do a good job of foreign investment access negative list and market access negative list, in the negative list description section, add "domestic and foreign investors apply the relevant provisions of the negative list of market access".

NDRC will work with MOFCOM and other departments and regions to further implement the pre-entry national treatment and negative list management system, implement the 2021 version of the negative list of foreign investment access for the whole country and the Pilot Free Trade Zone, manage the fields outside the negative list in accordance with the principle of consistency between domestic and foreign investment, give foreign-invested enterprises national treatment, and maintain national security in the opening up.