The Chinese government has announced that it will use a “negative list” management approach for all foreign investment, open up more sectors, and further relax restrictions for foreign businesses. From July 28, the negative list approach, which identifies sectors and businesses that are off limits or restricted, will be implemented nationwide, said the National Development and Reform Commission (NDRC). Government approvals are no longer required for most foreign investment and only investment on the negative list remains subject to approval. As a result, foreign investments now have easier access to China’s highway passenger transport, processing of certain rare metals, as well as manufacturing of rail transit equipment, and cooking oil, among others. The catalogue also shortened the list of sectors in which foreign investment is completely banned from 36 to 28. Sectors that are off limits include air traffic control and compulsory education institutes.

Foreign banks can now sell and underwrite government bonds in the Shanghai free trade zone (FTZ), according to the latest negative list in the financial service sector. There is also no restriction for international ratings agencies to carry out their business in the Shanghai FTZ. The latest negative list also makes it clear that the proportion of foreign capital in a securities firm cannot exceed 49%. The limit on shares held by a foreign investor in a listed domestic brokerage is unchanged at 20% for a single investor and a total of 25%, the Shanghai Daily reports.