China to Remove Foreign Shareholding Restrictions in Certain Industries
Corporate China Commentary 2 - 2018
On April 17, 2018, the National Development and Reform Commission of China (“NDRC”) published on its official website a news release announcing that China will remove foreign shareholding restrictions in automobile, shipbuilding and aircraft manufacturing industries.
It is expected that the Chinese government will implement the above significant change its foreign investment policy through a new version of Foreign Investment Negative List (“2018 Negative List”) in the first half of this year. The 2018 Negative List will replace the current 2017 Negative List and become the fundamental legal document of foreign investment policy of China. It is also mentioned that, the 2018 Negative List will include a series of expansion measures in both 2018 and the next few years in certain areas as finance, automobile, energy, resources, infrastructure, transportation, trade circulation and professional services.