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China (Shanghai) Pilot Free Trade Zone: 2014 Negative List issued

Business Regulation and Tax Newsflash

Issue 15 - 4 July 2014

On 30 June 2014, the Shanghai Municipal government released the new list of special administrative measures on foreign investment access to the China (Shanghai) Pilot Free Trade Zone (Pilot FTZ) (i.e. 2014 Negative List). Foreign investors engaged in activities not on the “Negative List” will enjoy the same treatment as domestic investors (i.e. national treatment) and, as a result, it is no longer necessary to obtain pre-approval of a foreign investment project or to set up a foreign-invested enterprise. Instead, a filing (i.e. reporting) requirement applies. The government has expanded foreign access to certain sectors by reducing the number of items on the 2014 Negative List from 190 in 2013 to 139. The following key changes are made to the list:

  • Deletion or modification of 33 items to provide further relaxation for foreign investors; we have prepared a list of them based on our comparison of 2014 and 2013 Negative List for your reference (see email attachment);  
  • Deletion of 14 items where the restrictions or prohibitions are imposed on both foreign and domestic investors (e.g. prohibition on gambling and pornographic industries); it is worth noting that the deletion of such items should not be considered to abolish the restrictions or prohibitions;
  • Modification of 30 items to clarify specific requirements imposed on foreign investors; and
  • Deletion of 23 items due to re-grouping where the restrictions or prohibitions remain unchanged.

Please follow the link for a copy of 2014 Negative List (in Chinese only). You may also access the relevant information and regulations about the Pilot FTZ via Deloitte's dedicated portal page.

Measures in the 2014 Negative List to provide broader access to foreign investors
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