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China (Shanghai) Pilot Free Trade Zone: Negative List (unofficial English translation)

Business Regulation and Tax Newsflash

Issue 6 - 15 October 2013

We attach our English translation of the Special Administrative Measures (Negative List) on Foreign Investment Access to the China (Shanghai) Pilot Free Trade Zone (2013) ["Negative List"], which was released on the launch of the pilot. Of note:

  • Areas outside Negative List:
    • Pre-approval of foreign invested projects and the setting-up of foreign invested enterprises is no longer required, unless otherwise stipulated (State Council)
    • Requirement for filing, i.e., reporting, applies in place of pre-approval
  • Specifically prohibited or restricted industries: the prohibition or restriction continues, unless modified by Negative list provisions
  • Hong Kong, Macau and Taiwan investors continue to be entitled to the more favorable treatment, if any, available under Closer Economic Partnership Agreements and Cross-Straits Agreements
  • Existing regulations continue to be applicable in respect of:
    • Foreign investors undertaking M&A, strategic investments in listed companies, capital contributions using equity interest of domestic companies
    • National security and anti-monopoly investigations
  • Other:
    • Projects and activities that compromise national or public security, and public interest are prohibited
    • Negative List provisions do not apply in respect of:
      • Public Management, Social Security & Social Organizations
      • International Organizations

 

Deloitte unofficial English translations of other significant regulations are provided via the dedicated portal page. You may also follow the link of the government website for the whole texts of the above regulation in Chinese.

Special Administrative Measures (Negative List) on Foreign Investment Access to the China (Shanghai) Pilot Free Trade Zone 2013
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