European Chamber's Statement on the New Negative List 2018
The Special Administrative Measures on Access to Foreign Investment 2018 (the new negative list) widens market access for foreign investors in several industries, with the number of items included on the list being reduced from 63 to 48. Recent announcements of an opening in the financial services, shipbuilding, aircraft manufacturing and auto sectors have now been put into writing. The new list also provides an opening-up timetable and roadmap for the auto and finance sectors, as the European Chamber has called for in the past, which should help to give businesses more time to adjust their development strategies.
The new list, unfortunately, continues to discriminate against non-Chinese companies by maintaining the distinction between domestically-invested and foreign-invested enterprises with respect to market entry and approval requirements. The European Chamber will, therefore, continue to advocate for a shorter, national negative list to replace the investment catalogue altogether, in order to create a true level playing field.
"Some members have already told us that that changes in their industry are significant, but it is too early to tell what impact it will have,” said Mats Harborn, president of the European Union Chamber of Commerce in China.
“The European Chamber recognises this as a further step towards China’s opening but a negative list of 48 areas is excessive and a lot more needs to be done. In some cases, implementing regulations will need to be developed and in other cases, existing regulations will need to be amended. This will take time and we hope China will move quickly."