On 1 November 2024, China promulgated the “Special Administrative Measures (Negative List) for Foreign Investment Access (2024 Edition),” repealing the previous list published at the end of 2021.
The negative list system, widely adopted globally, serves as an investment access policy framework. These lists delineate sectors and business activities in which foreign participation is either restricted or prohibited. For sectors and activities not listed, the country commits to offering equal treatment to both domestic and foreign investors.
China currently implements both national and pilot Free Trade Zone (FTZ) versions of the negative lists for foreign investment access. Between 2017 and 2021, China revised these lists regularly, reducing restrictions and introducing open policies across various key sectors. While the 2021 FTZ version remains applicable solely within the pilot free trade zones, the newly updated Negative List 2024 applies nationally. This version fully opens the manufacturing sector, eases entry requirements for emerging industries, further opens the service sector, and explores new opportunities in green development—expanding prospects for global investors seeking growth in China.
Key Differences Between 2021 and 2024 Negative Lists
Compared with the 2021 edition, the 2024 national Negative List for Foreign Investment Access has removed the last two remaining restrictions in the manufacturing sector. These restrictions were: “publication printing must be Chinese-controlled” and “prohibition on foreign investment in the application of traditional Chinese medicine processing techniques, such as steaming, frying, and roasting, and in the production of proprietary formula Chinese patent medicines.” Following this revision, the number of restricted items on the national Negative List has been reduced from 31 to 29, effectively eliminating all foreign investment restrictions in the manufacturing sector.
Here below we provide an English version of the Negative List 2024 for your reference.
Special Administrative Measures (Negative List) for Foreign Investment Access (Edition 2024)
- The Chinese party is required to hold at least 34% of shares in the selection and breeding of new wheat varieties and the production of wheat seeds. Additionally, the Chinese party must hold the controlling share in the selection and breeding of new corn varieties and the production of corn seeds.
- Investing in research and development, cultivation, and plantation of rare, unique, and high-quality varieties is prohibited in China. This includes the manufacturing of relevant reproductive materials, such as quality genes for planting, animal husbandry, and aquaculture.
- Investing in breeding genetically modified crops, livestock, poultry, aquatic fingerlings, and producing genetically modified seeds is prohibited.
- Investing in fishing in China’s marine areas and inland waters is prohibited.
- Investment in the exploration, mining, and processing of rare earth, radioactive minerals, and tungsten is prohibited.
- Chinese investors must control the construction and operation of nuclear power plants.
- Investing in the wholesale and retail of tobacco products, such as cigarettes and leaf tobacco, is prohibited.
- Domestic water transport companies must be controlled by the Chinese investors.
- Public air transport companies must be majority-owned by Chinese investors, with foreign investment capped at 25%. The legal representative must be a Chinese citizen. The legal representative of a general aviation company must be a citizen of Chinese nationality; in particular, the general aviation companies for agriculture, forestry and fishery industries shall be limited to joint ventures, and the controlling share of other general aviation companies shall be held by Chinese investors.
- Chinese investors must hold a controlling share in civil airport projects. Foreign investors are not allowed to participate in air traffic control tower construction or operation.
- Investing in postal companies and domestic express delivery services is strictly prohibited.
- Foreign investors in telecommunications companies are restricted to services that China has committed to under its WTO obligations. For value-added telecommunications services (excluding e-commerce, domestic multi-party communications, store-and-forward, and call centers), the foreign investment shareholding ratio shall not exceed 50%. Basic telecommunications services must be controlled by Chinese investors.
- Investing in Internet news and information services, Internet publishing services, Internet audio-visual program services, Internet culture operation (except for music) and Internet public information services is prohibited, except for the contents that has been opened up pursuant to China’s WTO commitments.
- Foreigners cannot invest in Chinese legal services or become partners in Chinese law firms, except for providing information on the Chinese legal environment.
- Market surveys must be conducted exclusively by joint ventures, while radio and television audience rating surveys are required to controlled by Chinese investors.
- Investing in social surveys is prohibited.
- Investing in the development and application of human stem cells, genetic diagnosis, and treatment technologies is not allowed.
- Investing in humanities and social science research institutes is prohibited.
- Investment in the following activities is prohibited: geodetic surveying, marine charting, aerial photography for surveying and mapping, ground motion measurement, and surveying and mapping of administrative boundaries, compilation of topographic maps, maps of world administrative regions, maps of Chinese administrative regions, and administrative maps at the provincial level and below, national teaching maps, local teaching maps, real three-dimensional maps and electronic maps for navigation, regional geological mapping, mineral geological surveys, geophysical and geochemical surveys, and studies of hydrogeology, environmental geology, geological disasters, and remote sensing geology and other surveys. These restrictions do not apply to mining right holders conducting activities within the scope of their mining rights.
- Pre-school, high schools, and higher education institutions must operate as Sino-foreign cooperatives, with Chinese investors holding majority control. The principal or chief administrator must be Chinese, and at least half of the governing body must be Chinese members.
- Investing in compulsory or religious education institutions is prohibited.
- Medical institutions are required to operate as joint ventures.
- Investing in news institutions (including but not limited to news agencies) is not allowed.
- Investing in the editing, publishing and production of books, newspapers, periodicals, audio-visual products and electronic publications is prohibited.
- Investment in radio and TV stations, channels, transmission and coverage networks is prohibited. Additionally, providing on-demand radio and TV services or installing satellite TV ground receiving facilities is not allowed.
- Investing in producing and operating radio and television programs (including imports) is prohibited.
- Investing in movie production companies, distribution companies, cinema companies, and the movie importation business is not allowed.
- Investing in auction companies for cultural relics, cultural relics stores, and State-owned cultural relics museums is prohibited.
- Investing in performing arts groups is prohibited.
Disclaimer: The above English translation of the Special Administrative Measures (Negative List) for Foreign Investment Access (2024 Edition) is provided for reference only. In the event of any discrepancies between this translation and the original Chinese text, the Chinese text shall prevail. This document does not constitute legal advice, and users are encouraged to consult with a professional advisor for comprehensive guidance and interpretation in line with applicable regulations.
