China (Shanghai) Pilot FTZ Go back »

Summary

On 20th April, 2015, the Chinese State Council released the much-awaited master plan for Tianjin, Guangdong and Fujian Free Trade Zones (FTZs), along with a shortened Negative List and a regulation on a National Security Review of Foreign Investment in the Pilot FTZs, which will be applied to all four FTZs.

Compared with the previous version which was released in July 2014 and included 139 items, 17 items were now dropped from the Negative List, taking the total number of items that are restricted for foreign investment down to 122. This is the second reduction of the Negative List since its release in 2013.

The European Chamber appreciates the present reduction of the Negative List. However, after an initial review it is apparent that many industries and sectors have been merely re-grouped.

That the same Negative List is now going to be applied to all four FTZs is a positive signal for the Chinese Government’s intention to eventually unify the system by which regulates investment. However, there is a concern that the newly introduced trial regulation of a national security review for foreign investment in the four FTZs could be used as a tool to discriminate against foreign investment on grounds of national security.

The Negative List needs to be further reduced in scope and speedily rolled-out on a nationwide basis for the service sector to give the Chinese economy the growth impetus it needs. The European Chamber will continue its engagement with the Chinese Government to bring about the broad market access we have been seeking and hoping for.

The European Chamber is currently analysing the documents. We hereby welcome the questions and input of our members. For further information, please feel free to reach out to:

ikraft@europeanchamber.com.cn

hlfu@europeanchamber.com.cn 

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