China’s economic planning body, the National Development and Reform Commission (NDRC), reduced the foreign investment ban list from 33 to 31 items, and the foreign investment ban list implemented in pilot free trade zones from 30 to 27 items.
In the new lists, the prohibition of foreigners to manufacture satellite television and radio broadcasting devices in the production of radio and television equipment was lifted, with the rule preventing the establishment of two separate partnerships to produce the same vehicles, with the ceiling rates imposed on the share of foreign investment in companies producing passenger cars.
Restrictions on the entry of foreign companies in the services sector into free trade zones were relaxed.
While the ban on foreign investment in the market research sector was lifted, polling for foreign investment was allowed. However, the restriction on foreign investment will remain partially, with the foreign share in partnerships in the sector not being more than 33 percent and the legal representatives must be Chinese citizens.
The two new lists will come into effect on January 1, 2022.