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Invest in China (1): What is the Negative List for Foreign Investment?

Intro China is gradually relaxing its restrictions on foreign investors looking to enter the internal market, and recently enterprises from various industry have consulted with us upon expanding their businesses into the territory. it is presumed that, foreign investors seizing this opportunity to enter Chinese markets would acquire major advantages than their competitors while facing the just-updated welcoming policies. In order to help you gain a better understanding of the legal requirements investing into China by whatever means, we plan to publish on our website a series of articles giving an overview of the relevant rules and regulations, as well as the general process involved in it. If you have any further inquiries about the article or our services, please contact us.

For industries not on the negative list, foreign investors shall be treated equally as their domestic counterparts – when accessing the industries, save for record-filing requirements with the relevant authorities. Additionally, all foreign invested enterprises will be required to follow the corporate governance rules under the PRC Company Law. In conclusion, Foreign investors should note the following three points before entering the Chinese market: * the entry permit system for foreign investment is implemented in accordance with the Negative List, and the implementation varies from different business areas, and between the entire country and the Free Trade Zones; * For investment areas that are not listed in the Negative List, foreign investors are now only required to register their investments with the relevant authorities. * All foreign invested enterprises will be required to follow the corporate governance rules under the Company Law of China since 1 Jan 2020. Here we have attached an English version of the 2019 Negative List for your reference. If you are planning to expand your business into China in the foreseeable future, make sure you understand