Invest in China: How to Navigate the Negative Lists

The following is an article published by the European Union Chamber of Commerce in China.

China’s National Development and Reform Commission (NDRC) and Ministry of Commerce (MOFCOM) on 30^th June 2019 released revised negative lists for foreign investment – Foreign Investment Negative List (2019) and Free Trade Zone Negative List for Foreign Investment (2019). Together with the Market Access Negative List (2018) released by the NDRC on 25^th December 2018, which applies to both domestic and foreign businesses, the negative lists can be confusing for foreign investors to navigate when considering investing in China.

This flowchart (available to download in English and Chinese versions below), produced by the European Chamber, provides a simple introduction to the relationships between China’s various negative lists and how they dictate the conditions under which foreign and Chinese companies invest in the market. 

To download a full list of comparisons between the 2018 and 2019 versions of the Foreign Investment Negative List and Free Trade Zone Negative List for Foreign Investment, please click here.

Disclaimer:

1. This chart is meant to help readers develop a general understanding of the relationship between China’s various negative lists and investors. It does not show the complete process of registering in China. It is intended merely to highlight issues and not to be comprehensive, nor to provide legal advice. The European Chamber expressly disclaims the liability in respect of the results of any action taken or not taken in reliance on any information contained in this flowchart.
2. This chart follows a linear flowchart simply for ease of understanding, but there is no priority or established sequence for the investment process.
3. © The European Union Chamber of Commerce in China 2019. All rights reserved.