China will issue a shorter nationwide market access negative list before the end of September to further streamline administration and improve business environment, the State Council, China's cabinet, said on Monday.
The new list is among a series of key plans announced by the General Office of the State Council on Monday in a bid to deepen reforms to simplify procedures, decentralize power, enhance supervision, optimize public services and improve business climate.
The government will further relax market access restrictions and cut the number of items on the negative list. No additional hidden restrictions or limits are allowed, read the statement by the State Council.
Beijing will promote the management model of "one list for the whole country" and establish a nationwide code system for the list. Local departments are forbidden to establish separate market access negative lists, the statement said.
China has introduced market access negative list since rolling out the first edition of the list in December 2018. The negative list specified industries where investors, domestic or foreign, are either restricted or prohibited.
The new removal of restrictions will be mainly tried in the services industry, the State Council's plan said.
The negative list management model is part of China's endeavor to standardize market entry rules for all players. More adjustments are expected, especially in fast-evolving emerging industries, Bai Ming, a deputy director of the International Market Research Institute of the Chinese Ministry of Commerce, told the Global Times on Monday.
"More adjustments are expected to be seen in the financial sector, the high-technology manufacturing sector and services," Bai said.
The new, shortened nationwide negative list for foreign investment became effective on July 30, showing the country's commitment to further open up its economy.
Foreign companies that meet the requirements of this list will be allowed to join the Chinese market. Once they are in Chinese market, the nationwide market access list will apply to them in the same way as for domestic companies.
As China further opens its market and streamlines administration, more cuts are being made in both negative lists, but that doesn't mean it's a one-way street. China may also add new terms according to practical needs, Bai said.
