MILAN, Jul 22 (Class Editori) - The new negative lists and the catalogue of encouraged investments, launched by China to comply with the demands of foreign companies and open their own economic system, will come into force on July, 30.
The documents are considered to be an integral part of the new law on foreign investments in China, which has reviewed an obsolete regulation. The two negative lists set out the sectors in which, at national level or in free trade areas, foreign investments are prohibited or subject to restrictions.
Compared to the 180 closed sectors of 2011, the new national list foresees just 40 sectors, eight less than the last revision. On the contrary, in the free trade zones the negative list has been reduced to 37 restricted areas. Among other developments, a Chinese majority partner will no longer be needed for the construction of gas pipelines and piping in cities with more than 500,000 inhabitants, for the construction of cinemas and for artists' agencies. The obligation of joint ventures for the exploration and development of oil or natural gas fields, as well as in some fields of agriculture and environmental protection is also canceled.
As for the investments encouraged, the changes range from new materials for aerospace, to components for robots and electric cars, as well as investments in services for the circular economy, in the production of vaccines or in medicines for cell therapy.
The Beijing government also seeks to recalibrate foreign investment to central and western regions. The areas involved are Anhui, Hunan, Sichuan, Henan, Yunnan and Inner Mongolia.
Despite the decline in the banned sectors and the catalogue of encouraged investment that is getting longer, the revisions planned by the National Development and Reform Commission are still considered insufficient.
“Economic reforms in China need to go beyond the piecemeal revision of the negative list.” Attorney Carlo Diego D'Andrea, vice president of the European Union Chamber of Commerce in China has made his point: “The government must implement a consistent reform of the regulatory system. A dribs and drabs strategy won't solve the troubles of the economy.”
(Source:Class Editori)
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