China Enters Negative Account of Foreign Investment in 2023

On December 27, 2022, the National Development and Reform Commission (NDRC) and the Department of Commerce (MOFCOM) jointly released two updated versions of the "Negative List." Both versions will come into effect on January 1, 2023. This opens up China's market to foreign investors and promotes high-quality development.
Two negative items refer to special care measures. (Negative entry) for access to foreign investment and special custody measures. (Negative entry) for access to foreign investment in the pilot free trade area. (“2021 FTZ Negative List”)
Two Chinese negative lists with fields limited to foreign investment have been further shortened in the new update. and will replace the 2020 version respectively. The 2021 version reduces the number of sectors that limit or prohibit the participation of foreign investors. Expanding access to key sectors of the economy
major changes
An important change of the new item is the openness of the domestic manufacturing industry. After that, negative entries for FTA manufacturing industries are set to zero.
according to such list Restrictions on foreign ownership of passenger car production And the restrictions on establishing two joint ventures in China for the production of the same type of automotive products will all be lifted. for the production of radio and television equipment Restrictions on foreign investment in the production of terrestrial facilities and key components for satellite television and broadcasting will be lifted. The management of foreign investment is the same as that of domestic enterprises.
The opening of the automotive sector follows a plan drawn up by the NDRC in 2018 that would see China lift foreign ownership restrictions on companies producing all electric and plug-in hybrid vehicles by 2018. commercial vehicles by 2020 and the passenger car market to widen by 2022.
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