The three negative lists - your guide

摘要

Mainland China is a dynamic market undergoing constant change and reform as it continues to open up more business activities to foreign companies. There are three negative lists and it is vital for all businesses in Mainland China to be aware of the lists that apply to their business. The 'negative lists' are frequently referred to when doing business in Mainland China. They should be the first port of call when looking to commence new business activities in the country as they define both which activities are prohibited and which activities require specific prior government approval. With rules and regulations under constant review, it is always advisable for companies to work with local experts to ensure that they do not fall foul of the law at this very first step. The latest version of this list, issued on 25 December 2018, marks the full implementation of the market access negative list system in Mainland China, which is now applicable to all companies, both domestic and foreign owned. Any company can operate business activities that do not appear on the negative list (although foreign-owned companies are also subject to the additional negative lists detailed below). The list is in three sections. The first is an explanation of the scope of the list, followed by the list of activities that are prohibited for non-governmental bodies and finally those that require prior government approval for a company to be permitted to undertake the activity. The two appendices reference the specific regulations that apply to the prohibitions and restrictions, where full details can be found.