What is the Chinese Negative List?
The list details industries that are off-limits to both Chinese and foreign investors. Any entity not on the list is open for investment. China started the negative list in 2018 as part of a broader effort to streamline administrative management over investments. It has revised the list every year.
What is China’s free trade zone?
Free Trade Zones (FTZs) are types of special economic zones (SEZs) where goods may be imported, handled, manufactured and exported without direct intervention from Customs. Each FTZ in China has an industry and economic focus, with different incentives to fulfil its requirements.
What means negative list?
The term negative list is used to define industries in which foreign companies cannot invest and specifies restrictions or bans on certain types of foreign investment. For those industries not included in the negative list, foreign investors no longer need to go through the long approval process.
Why did China create free trade zones?
China set up its first FTZ in Shanghai in 2013 to attract more foreign investment and promote trade and regional integration. Through the first seven months of 2020, Chinese FTZs contributed USD400 billion (13.5%) in foreign trade and attracted more than 3,300 new foreign enterprises, accounting for USD13.
Why does China have a negative list?
The Negative List provides guidance and governs industry sectors in which foreign investment is prohibited or where possible restrictions may apply. In July 2020, China’s Negative List for foreign investment was updated and the number of measures limiting foreign investment into the country were further reduced.
Which country invests the most in China?
The country is the largest recipient in Asia and the leading investing country in terms of FDI outflows. China’s main investors have remained broadly stable….FDI STOCKS BY COUNTRY AND BY INDUSTRY.
| Main Investing Countries | 2019, in % |
|---|---|
| The Mainland of China | 69.7 |
| Singapore | 5.5 |
| South Korea | 4.0 |
| Virgin Islands | 3.6 |
What can result from free trade?
Freeing trade reduces imported-input costs, thus reducing businesses’ production costs and promoting economic growth. The results are higher wages, investment in such things as infrastructure, and a more dynamic economy that continues to create new jobs and opportunities. Free trade drives competitiveness.
What is negative list in trade?
Under a negative list approach, the list that is found in annexes to a trade agreement and that contains all of the measures that do not conform to the core disciplines of the relevant chapters and that governments choose to maintain.
What is negative list in international business?
The negative lists include numerous sectors, such as financing, banking or commercial services, and involve specific management interventions. The negative list composes the description of the specific sectors in which there are certain restrictions and limits.
Does China allow foreign investment?
The Foreign Investment Law is a law of the People’s Republic of China governing foreign direct investment in China. The law was adopted by the National People’s Congress on March 15, 2019, and came into effect on January 1, 2020.
In which sectors FDI is prohibited in India?
FDI in India is currently not permitted in the following sectors:
- Lottery Business including Government /private lottery, online lotteries, etc;
- Gambling and Betting including casinos etc.;
- Chit funds;
- Nidhi company (borrowing from members and lending to members only);
- Trading in Transferable Development Rights (TDRs);