China Reduces 'Negative List' by 11 Items, Lowers Barriers for Foreign Investment

Unmanned Aerial Vehicle Operations and Electronic Cigarettes Newly Added to the List

Yonhap News

The Chinese government has reduced the number of items on its "market access negative list," which specifies sectors where foreign companies face restrictions, from 117 to 106 this year. With these eased market entry restrictions, more foreign investors will be able to access the Chinese market.

According to Chinese media reports on April 24, the National Development and Reform Commission of China announced that the number of items on the "Market Access Negative List (2025 edition)" has decreased from 117 in the 2022 edition to 106.

First, eight nationwide entry restrictions have been eliminated, including changing the licensing system for official seal production to a registration system. In addition, eight nationwide entry restrictions?such as pilot operations for new telecommunications businesses, drama production, establishment of pharmaceutical wholesale and retail companies, and internet information services for pharmaceuticals and medical devices?have been partially lifted.

While maintaining the market access management procedures, the entry process has been further streamlined. Seventeen regional entry restrictions have also been removed, including those related to transportation logistics, freight transportation information services, and vehicle rental services. On the other hand, new industries and sectors such as unmanned aerial vehicle operations and electronic cigarettes have been added to the negative list.

China first introduced a unified nationwide "negative list" in 2018, after conducting pilot projects to restrict foreign companies' market access, and has revised it four times since then. As a result, the number of items has decreased by about 30%, from 151 at the time of introduction to the current 106.

At the 3rd Plenary Session of the 20th Central Committee of the Communist Party of China, held in July last year, it was decided to further remove market entry barriers. Improving the "market access negative list" was included as one of the measures.

This content was produced with the assistance of AI translation services.