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China’s shortened foreign investment negative lists to enhance int’l competitiveness of relevant industry, experts

2020-07-09 08:08:52 Xinhua Silk Road

China’s newly shortened negative lists for foreign investment to take effective on July 23 are expected to improve international competitiveness of relevant industries.

China's newly shortened negative lists for foreign investment to take effective on July 23 are expected to improve international competitiveness of relevant industries, experts believe.

Further reducing the negative lists and expanding the scope of foreign investment will help stabilize the confidence of foreign enterprises in China and demonstrate China's determination to continue to open to the world, said Liu Xiangdong, a senior analyst at China Center for International Economic Exchanges.

For foreign companies, further opening up will help them continue to expand their business in China and in a wider range of fields. Meanwhile, as relevant access rules become clearer, it also provides foreign companies with clearer options, Liu added.

Pan Helin, a professor at Zhongnan University of Economics and Law, said that there are fewer and fewer restrictions on foreign investment, including foreign ownership of commercial vehicle manufacturing and air traffic control, which is a huge investment opportunity for foreign companies.

The two negative lists, one for foreign investors entering Chinese market and one for foreign investment in pilot free trade zones, respectively cut seven items, involving areas such as service, manufacturing, agriculture, capital market and education.

"The new negative lists not only open more areas to foreign investment, but also relax the restrictions on foreign equity participation, providing new investment opportunities and a fairer environment for foreign investors," said Xiao Benhua, an expert on FTZ of Shanghai Lixin University of Accounting and Finance.

In the financial sector, the restrictions on shareholdings of securities companies, securities investment fund management companies, futures companies and life insurance companies have been lifted, which means China's capital market will be more integrated to overseas markets, Pan said.

Liu believed the shortened negative lists will help the reform of relevant industry, promote the adjustment of the industry's regulatory rules and improve regulatory capacities, and thus enhance the international competitiveness of relevant industries.

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