Activities in sectors not included in this list are in principle permitted. This means that, to operate them, a 100% owned LLC company or subsidiary (ex-WFOE) may be set up to conduct these activities.
The National Negative List and its 31 special administrative measures
governing access
to foreign investment in mainland China |
I. Agriculture, forestry, livestock and fisheries
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1. Chinese participation in the breeding and improvement of new wheat varieties and seed production shall not be less than 34%. The selection and improvement of new corn varieties and seed production shall be controlled by the Chinese side of a joint venture. The Chinese party must have a majority interest in the breeding and selection of new corn varieties and seed production. |
2. It is prohibited to invest in the research and development, breeding and cultivation of valuable, rare and unique varieties in China, as well as in the production of related breeding materials (including genes for planting, breeding and aquaculture). |
3. It is prohibited to invest in breeding and obtaining genetically modified varieties of agricultural crops, livestock and poultry, aquatic plants, as well as in the production of genetically modified seeds (seedlings).
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4. It is prohibited to invest in the fishing of aquatic products in Chinese territorial waters and inland waters. |
II. Mining activity |
5. Investments in the exploration, mining, development of rare earths, radioactive minerals and tungsten are prohibited. |
III. Production and manufacturing |
| 6. The printing of publication is controlled by the Chinese part of a joint venture company. |
7. It is prohibited to invest in the application of concoction techniques such as steaming, frying, roasting and calcining of Chinese medicine tablets. Prohibited to invest in the production of Chinese proprietary medicine prescription products. |
IV. Electricity, heat, gas and water production & distribution industry |
8. The construction and operation of nuclear power plants shall be controlled by the Chinese partner of a JV entity. |
V. Wholesale and retail trade |
| 9. Investment in wholesale and retail of tobacco, cigarettes and other tobacco products is prohibited. |
VI. Transport, storage and postal services |
| 10. Chinese shipping companies shall be controlled by the Chinese side. |
11. Any state-owned air transport company shall be controlled by a Chinese partner. The investment share of a foreign enterprise and its subsidiaries shall not exceed 25%. The legal representative must be a Chinese national. For civil aviation companies, the legal representative must be a Chinese national. Sino-foreign joint ventures are limited to civil aviation enterprises in the fields of agriculture, forestry and fisheries. Chinese ownership is restricted to other general aviation companies.
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12. The construction and operation of civil airports shall be controlled by the Chinese side. The foreign party is not allowed to participate in the construction or operation of airport towers. |
| 13. Foreign investment in postal enterprises and domestic mail services is prohibited. |
VII. Information transmission services, software and information technology
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14.
Telecommunications enterprises : limited to those telecommunications enterprises that China committed to open upon accession to the WTO. Maximum foreign ownership of 50% in value-added telecom enterprises. (Excluding e-commerce, domestic multi-party store-and-forward communications, and call centers). Core telecommunications business must be controlled by a Chinese partner.
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15.
Investment in Internet news and information services, Internet publishing services, Internet audio-visual program services, Internet cultural operations (except music) and Internet public publishing services are prohibited (except music). Public information services on the Internet. Excluding the above-mentioned services which were opened in China's WTO accession commitments. |
VIII. Rental and Business Services
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16. Prohibited from investing in Chinese legal business (except for providing information on the impact of the legal environment in China). Prohibited from becoming a partner in a domestic law firm. Prohibited from becoming a shareholder in a Chinese law firm. |
17. Foreign investment in market research is limited to joint-venture companies. Radio and television audience surveys must be controlled by the Chinese partner. |
| 18. Investment in social research is prohibited. |
IX. Scientific Research and Technical Services
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| 19. Prohibition of investment in the technological development and application of human stem cells, diagnostics and gene therapy. |
| 20. Prohibition of investment in research institutions in the humanities and social sciences. |
21.
It is forbidden to invest in geodesy, marine mapping, aerial photography, seismic surveying, mapping of the boundaries of administrative areas, topographic. (regions, provinces, local maps, educational, 3D and electronic maps for navigation, regional geology, mineral, geophysics, geochemistry and hydrogeology).
Preparation of regional geological mapping, mineral geology, geophysics, geochemistry, hydrogeology, environmental geology, geological hazards, remote sensing geology and other studies. Mineral rights holders are not subject to this special management measure when the work is performed within the scope of the mineral rights.
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X. Education
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22.
Primary, general secondary and higher education institutions shall be limited to education as Sino-foreign cooperation. They shall be run by the Chinese side. The director or chief administrative officer shall be a Chinese national. The representative or chief administrative officer shall be of Chinese nationality. At least half of the board of directors, supervisory board or joint management committee must be Chinese. |
| 23. Prohibition of investment in compulsory education and religious education institutions. |
XI. Health and Social Work |
| 24. Medical facilities are limited to sino-foreign joint-ventures. |
XII. Culture, Sports and Entertainment
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| 25. Investment in news agencies including, but not limited to, news agencies is prohibited. |
| 26. Investment in the business of editing, publishing and producing books, newspapers, periodicals, audiovisual products and electronic publications is prohibited. |
| 27.
Prohibition of investments in radio and television stations, radio and television transmission. Coverage networks (transmitters, retransmitters, radio and television satellites, satellite link stations, satellite transceiver stations, monitoring stations, etc.) are prohibited. Radio and television video-on-demand and satellite broadcasting activities are prohibited. |
| 28. Prohibition to invest in companies producing and operating radio and television programs. |
| 29. Investments in film production companies, distribution companies, film companies and film introduction companies are prohibited. |
| 30. Prohibition of investment in state-owned auction houses, heritage stores and heritage museums for the sale of cultural relics. |
| 31. It is prohibited to invest in cultural performance groups |
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FTZs are designed to be testing grounds for new policies and economic reforms. The more relaxed investment environment in these zones aims to attract foreign investment, boost economic activity, and pilot reforms that could later be implemented nationwide. Key examples of FTZs in China include Shanghai, Shenzhen, and Hainan, each with its unique focus and strategic importance.
