A foreign investment negative list concerning free trade zones in Shanghai and Tianjin municipalities, and Guangdong and Fujian provinces, was issued by the State Council on April 20.
The list contains 119 types of foreign investment projects in 49 areas that will not fall under the scope of national treatment and require special management. It also contains three areas of restrictions that apply to foreign investment in various types of businesses.
The 49 industries listed include seeding, fishing, oil and gas, aviation manufacturing and nuclear power.
Also, foreign investors in the free trade zones should abide by special management measures stipulated in other regulations, if their investment involves national security, public order, public culture, financial prudence, government purchase, subsidy and taxation, the State Council said.
Foreign investment that involves the issue of national security should be investigated according to the trial procedures of national security investigation into foreign investment issued by the State Council.
Other kinds of foreign investment in the free trade zones should enjoy the same treatment as domestic investment, the State Council said. Investment in the free trade zones from China’s Hong Kong, Macao and Taiwan should follow the special measures and restrictions set out in the negative list.
In the closer economic partnership arrangements and supplementary agreements the mainland signed with Hong Kong and Macao, and in the Economic Cooperation Framework Agreement the mainland signed with Taiwan, as well as in the free trade agreements China signed, clauses that apply to the country’s free trade zones and favor investors in the zones should be implemented accordingly, the State Council said.