What is specific in the 2021 Edition of the Special Administrative Measures on Access to Foreign Investment (Foreign Investment Negative List)?

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On 1 January 2022, the Special Administrative Measures on Access to Foreign Investment 2021, or Foreign Investment Negative List 2021, (as well as the Free Trade Zone Special Administrative Measures on Access to Foreign Investment 2021) took effect in China.

Specific features of the Special Administrative Measures on Access to Foreign Investment (hereinafter – the Measures) are as follows:

  1. The Measures uniformly lists the special administrative measures for foreign investment access such as equity requirements and executive requirements. 
  2. Domestic and foreign investors shall uniformly apply the relevant provisions of the negative list of market access. Areas outside the negative list of foreign investment access shall be managed in accordance with the principle of consistency between domestic and foreign investment.
  3. Foreign investors shall not engage in investment and business activities as individual industrial and commercial households, sole proprietorship investors and members of farmers' professional cooperatives.
  4. Foreign invested enterprises investing in China shall comply with the relevant provisions of the Foreign Investment Negative List.
  5. Licences will not be granted to foreign investors who intend to invest in the fields that are specified in the Foreign Investment Negative List, but do not meet the provisions of the Foreign Investment Negative List.
  6. No foreign-invested partnership shall be established for investment in areas requiring equity.
  7. After being examined and approved by the relevant competent department of the State Council and submitted to the State Council for approval, the provisions in relevant fields in Foreign Investment Negative List may not apply to specific foreign investment.
  8. If a domestic enterprise engaged in the business prohibited by the Foreign Investment Negative List issues shares abroad and is listed for trading, it will be examined and approved by the relevant competent departments in China. 
  9. Foreign investors shall not participate in the operation and management of the enterprise.
  10. The shareholding proportion shall be implemented with reference to the relevant regulations that are in effect.
  11. Issues on domestic (Chinese) companies, enterprises or natural persons who legally establish or control companies from abroad to merge and acquire domestic (Chinese) companies connected with them, shall be processed in accordance with the relevant provisions on foreign investment, overseas investment, foreign exchange management, and other relevant laws and regulations.

The Contents of this post is based on the Official Explanation of the Special Administrative Measures on Access to Foreign Investment (Foreign Investment Negative List) (version 2021) by the Jiaozuo Municipal Bureau of Commerce.


Published: 4 January 2022
Updated: 9 May 2022

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