Negative List Shortened in Shanghai FTZ

On July 1st, the Shanghai Free Trade Zone government has released an update of its Negative List, the list referencing the industries in which foreign investments are forbidden. This update reduces the number of restricted industries from 190 to 139, in an effort to increase the zone attractiveness for foreign capital. Key changes affect:

  • Manufacturing:numerous new sectors have been opened to foreign investments, including cotton processing, paper manufacturing and printing inks, certain chemicals and vitamins, electronic components for cars. Import and export good certification companies can now be foreign-funded.
  • Transportation:railway freight and maritime transportation sectors have been opened to foreign capital, along with aircraft repairs.
  • Financial Industry: investment banking, trust companies and currency brokerage companies are not restricted anymore.
  • Healthcare Industry: minimum investment of RMB 20 million has been abolished. Maximum operation period, previously limited to 20 years, disappears.
  • Internet:Investments in cybercafés have also been authorized, in the wake of the gaming consoles ban lift earlier this year.

The Shanghai Free Trade Zone is therefore keeping on pushing forward the liberalization of its market, pursuing more openness and transparency.

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