China Releases 2020 Negative List for Foreign Investment Access in Hainan
The National Development and Reform Commission and the Ministry of Commerce of the PRC jointly released the Negative List for Foreign Investment Access in Hainan Free Trade Port (2020 Edition) (hereinafter referred to as the 2020 Hainan Negative List) on 31 December 2020, which will come into effect on 1 February 2021.
The 2020 Hainan Negative List covers 27 items of 11 industries, which expands the opening-up of the following areas:
- Remove the restrictions on foreign investment access to online data processing and online transaction processing business.
- Enterprises registered in Hainan are allowed to carry out internet data center and content distribution network services for the whole territory of Hainan free trade port and the world if their service facilities are also located in Hainan free trade port.
- Overseas high-level universities and vocational colleges specializing in science and engineering, agriculture and medicine will be allowed to set up and run independently in Hainan free trade port.
- Foreign investment are allowed in some commercial non-litigation legal affairs related to Hainan in order to meet the demand for foreign legal services in trade, investment, finance and other areas.
- The restrictions on foreign investment access to the area of market survey will be abolished, but the survey of radio and television listening and viewing shall be controlled by the Chinese investors,
- Foreign investment are allowed in the area of social investigation, and the proportion of Chinese ownership shall not be less than 67%. The legal representative of the enterprise shall have Chinese nationality.
- Foreign ownership limits for passenger car manufacturing will be lifted. And the restriction that the same foreign investor can establish two or less joint ventures in China to produce similar vehicles will be removed as well.
- Regulations prohibiting foreign investment in the exploration, mining and ore dressing of rare earth, radioactive minerals and tungsten will be abolished.
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