With the consent of the CPC Central Committee and the State Council, the national development and Reform Commission and the Ministry of Commerce issued Decree No. 32 and No. 33 on June 23, 2020, respectively issuing the Special Administrative Measures for foreign investment access (negative list) (2020 Edition) and the Special Administrative Measures for foreign investment access in pilot free trade zones (negative list) (2020 Edition), which will come into effect on July 23, 2020. Special Administrative Measures for foreign investment access (negative list) (2019 Edition) and special administrative measures for foreign investment access in pilot free trade zone (negative list) (2019 Edition) shall be abolished at the same time.

This year, the novel coronavirus pneumonia has brought great impact to global transnational investment, and the world economy has been seriously affected. The release of the negative list of foreign investment access in 2020 is an important measure to implement the deployment of the Party Central Committee and the State Council, and to implement the comprehensive opening-up in a wider scope, wider scope and deeper level. It is also the latest set of documents to promote the negative list management system after the implementation of the "foreign investment law". It shows China's determination to support economic globalization and transnational investment We will further improve the environment for foreign investment and promote high-quality economic development with a higher level of openness.

In accordance with the principle of only reducing but not increasing, this amendment further reduces the negative list of foreign investment access. Among them, the national negative list of foreign investment access has been reduced from 40 to 33, and the negative list of foreign investment access in pilot free trade zones has been reduced from 37 to 30. Main changes: first, accelerate the process of opening up key areas of service industry. In the financial sector, the restrictions on the ratio of foreign shares in securities companies, securities investment fund management companies, futures companies and life insurance companies should be abolished. In the field of infrastructure, the provision that the construction and operation of urban water supply and drainage pipelines with a population of more than 500000 must be controlled by the Chinese side shall be cancelled. Second, we will relax access to manufacturing and agriculture. In the manufacturing sector, the restrictions on foreign shares in commercial vehicle manufacturing will be lifted, and the provisions prohibiting foreign investment in radioactive mineral smelting, processing and nuclear fuel production will be abolished. In the field of agriculture, the Chinese side should hold more shares in the breeding of new wheat varieties and seed production to no less than 34% of Chinese shares. Third, we will continue to open pilot free trade zones. On the basis of the national opening-up measures, the pilot free trade zone will continue to take the lead. In the field of medicine, the prohibition of foreign investment in Chinese herbal pieces shall be abolished. In the field of education, wholly foreign-owned enterprises are allowed to set up vocational education institutions with schooling system.

The national development and Reform Commission and the Ministry of Commerce will, in accordance with the requirements of the foreign investment law and its implementation regulations, implement the 2020 edition of the negative list of foreign investment access, and give equal treatment to domestic and foreign-funded enterprises in addition to the negative list. At the same time, we will improve the construction of an open economic system and safeguard national security in the process of expanding opening up.