On June 28, 2018, the Chinese government officially issued the Special Administrative Measures (Negative List) for the Access of Foreign Investment (2018 Version) which reduces the number of items from 63 to 48 , and widens the market access for foreign investment in 22 industries.
Below are the major sectors with relaxed restrictions:
Finance: foreign equity cap in the banking sector has been removed, and the foreign equity cap for securities companies, fund management companies, futures companies, and life insurance companies has been lifted to 51% ; all the equity restrictions in finance sectors will be removed from 2021.
Basic infrastructure: foreign investment equity ratio restrictions in trunk railway networks and power grids have been removed.
Transport: foreign investment restrictions for railway passenger transport companies, international marine transport, and international shipping agencies have been removed.
Commercial and trade circulation: foreign investment restrictions in gas stations and grain acquisition and wholesale have been removed.
Culture: The prohibition of foreign investment in business sites of internet access services has been removed.
Vehicles manufacturing: foreign investment equity ratio restrictions in special purpose vehicles and new energy vehicles have been removed; foreign investment equity ratio restrictions in commercial vehicle manufacturing will be removed from 2020, and restrictions in commercial vehicles and the maximum two joint ventures rule will be removed from 2022.
Ship manufacturing: foreign investment restrictions in the stages including design, manufacturing and repair have been removed.
Aircraft manufacturing: foreign investment restrictions in all types of aircrafts including trunk line, feeder line, aircrafts for general aviation purposes, helicopters, UAVs and aerostats, etc have been removed.
Despite of the above relaxation policies, some industries remain off limits to foreign investment. For example, the following culture-related sectors are still prohibited or restricted from foreign investment:
News agencies
The editing, publishing and production of books, newspaper, periodicals, audio-visual products and e-publications.
n Radio stations, TV stations, radio and TV channels, radio and TV transmission networks at various levels.
n Broadcasting and TV program production and operation (including import business) companies.
n Construction and operation of cinemas ( Chinese partners must hold the majority of equity).
n Film production companies, film distribution companies, theater chain companies and film import business.
n Performance agency companies (Chinese partners must hold the majority equity, except in FTZs)
n Art performance groups.