On 16 June 2017, the State Council released a new version of the special administrative rules for foreign investments in the pilot free trade zones (PFTZ) in China (hereinafter referred to as the “2017 PFTZ Negative List”), which shall apply to the 11 PFTZs in China effective from 10 July 2017. The current PFTZ Negative List (the “2015 PFTZ Negative List”) released on 8 April 2015 will be abolished at the same time.
The 2017 PFTZ Negative List sets forth 95 special administrative measures in 15 categories and 40 sub-categories. Compared with the 2015 PFTZ Negative List, 27 measures in relation to manufacturing, financial service, transportation, information technology, leasing and business advisory, etc. have been removed. Besides, the 2017 PFTZ Negative List sets forth more specific requirements for the financial service, insurance, press and publication sectors, and new restrictions in the education, radio and TV broadcasting sectors.
In this China Tax and Business News Flash, we will summarise the major changes in the 2017 PFTZ Negative List, share with you its impacts on foreign investment in the PFTZs as well as our observations.