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Negative List for Pilot FTZ
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Negative list ( 30 entries totally )
I. Agriculture, Forestry, Animal Husbandry and Fishery1.The Chinese Party’s shareholding ratio in new variety breeding and seed production of wheat and corn shall not be less than 34%.2.Investment in research and development, cultivation and plantation of Chinese rare and unique precious fine varieties, as well as manufacturing of the relevant propagative materials, (including excellent genes of planting, husbandry and aquaculture) shall be prohibited.3.Investment in breeding genetically modified varieties of crop seeds, livestock and poultry breeds and aquatic breeds, as well as manufacturing of genetically modified seeds (seedlings) thereof, shall be prohibited.
II. Mining4. Investment in exploration, mining and beneficiation of rare earth, radioactive minerals and tungsten shall be prohibited. (Without permission, it is forbidden to enter rare earth mines or obtain geological information on mines, ore samples and production technologies.)
III. Manufacturing5.Except for special purpose vehicles, new energy vehicles and commercial vehicles, the Chinese party in complete automobile manufacturing shall hold not less than 50% of the shares; a foreign investor may establish two or less equity joint ventures in China to manufacture the same type of complete automobile products. (The restriction on the shareholding percentage of foreign investors in the manufacturing of passenger cars and the restriction that one foreign investor may establish two or less joint ventures in the PRC to manufacture the same type of vehicles shall be removed in 2022)6.Satellite television broadcasting ground receiving facilities and key components production.
IV. Production and Supply of Electricity, Heat, Gas and Water7.For construction and operation of nuclear power plants, controlling stake shall be held by the Chinese Party.
V. Wholesale and Retail Trade8.Investment in wholesale, retail of tobacco, cigarettes, redried leaf tobacco and other tobacco products shall be prohibited.
VI. Transportation, Warehousing and Postal Industries9. Domestic water transport companies must be controlled by the Chinese Party. (The companies must not operate or rent any vessels or shipping spaces of Chinese nationality to operate, in a disguised form, the domestic waterway transportation business and its auxiliary businesses; Water transport operators shall not use any ship of foreign nationality to operate the domestic water transport business, but under the circumstance that, upon the approval of the Chinese government, there is no ship of Chinese nationality in China that can meet the requirements for the applied transportation, and the port or the water area where the ship is located is a port or water area opened up, the water transportation operator may, within the time limit or voyage provided for by the Chinese government, temporarily use the ship of foreign nationality to undertake the maritime transportation and towing between Chinese ports.)10.The controlling stake of public air transport companies shall be held by the Chinese Party, the investment ratio of a foreign investor and its affiliates shall not exceed 25%, and the legal representative shall be a Chinese citizen. The legal representative of a general airlines must be a Chinese citizen. General airlines for agriculture, forestry and fishery are limited to the form of equity joint venture, and other general airlines are subject to the provision of controlling stake held by the Chinese Party. (Only Chinese public air transport enterprises may provide domestic air services and act as the carriers designated by China to provide regular and ad hoc international air services.)11.For construction and operation of civil airports, comparative controlling stake shall be held by the Chinese Party. Foreign parties may not participate in the construction and operation of the airport tower.12.Investment in postal companies (and operation of postal services) and domestic express mail business shall be prohibited.
VII. Information Transmission, Software and Information Technology Services13.For telecommunications companies, their businesses are limited to telecommunications services opened up pursuant to China's WTO commitments; the foreign investment ratio for value-add telecommunications services (except for ecommerce, domestic multi-party communications, storage-forwarding and call centres) shall not exceed 50%; the controlling stake of operators of basic telecommunications services shall be held by the Chinese party (and the operators shall be telecommunications companies established pursuant to the law to engage specifically in basic telecommunications services). The pilot policies for the original area (28.8 km2) of the Shanghai Pilot Free Trade Zone (“FTZ”) are promoted to all FTZs.14.Investment in Internet news service, Internet publishing service, Internet audio-visual program service, cyber culture operation (except for music) and Internet information dissemination service (except for contents opened up in China's WTO commitments) shall be prohibited.
VIII. Leasing and Commercial Service15.Investment in Chinese legal matters (except for provision of information on impact on Chinese legal environment) shall be prohibited, and no foreign investor may be appointed as a partner of a domestic law firm. (Foreign law firms may only enter China in the form of a representative office, and shall not employ Chinese practising lawyers, and supporting staff employed by a foreign law firm shall not provide legal services for clients; setting up of a representative office in China or assignment of representative (s) based in China shall be subject to permission by the China's judicial authorities.)16.Market surveys shall only be limited to the form of equity joint venture; for radio and television ratings survey therein, controlling stake shall be held by the Chinese Party.17.Investment in social surveys shall be prohibited.
IX. Scientific Research and Technical Services18.It is prohibited to invest in the development and application of human stem cells and gene diagnosis and treatment technologies.19.It is prohibited to invest in humanities and social science research institutions.20.It is prohibited to invest in geodetic surveying, marine surveying and mapping, aerial photography for surveying and mapping, ground motion surveying, and surveying and mapping of administrative boundaries. Preparation of topographic maps, world administrative area maps, national administrative area maps, maps of administrative areas at or below the provincial level, national teaching maps, local teaching maps, true three-dimensional maps and electronic navigation maps; and regional geological mapping, mineral geology, geophysics, geochemistry, hydrogeology, environmental geology, geological disasters, remote sensing geology and other surveys (the mining right holders are not subject to these special administrative measures when carrying out work within the scope of their mining rights).X. Education21.Preschool education, ordinary high school and higher education institutions are limited to Sino-foreign cooperative education, and must be led by the Chinese Party (the president or the chief executive shall have Chinese nationality (and be domiciled within the territory of China) and members of the Chinese Party comprising the council, board of directors or joint governance committee shall not be less than half of the total members). (Foreign educational organisations, other organisations or individuals shall not establish schools and other educational organisations (excluding non-academic vocational training institutions and academic vocational education institutions) independently with Chinese citizens as main enrolment targets; however, foreign educational organisations may cooperate with Chinese educational organisations to establish educational organisations with Chinese citizens as main enrolment targets.)22.It is prohibited to invest in compulsory education institutions or religious education institutions.
XI. Health and Social Work23.Medical institutions are subject to the form of joint venture.
XII. Culture, Sports and Entertainment24.It is prohibited to invest in news organizations (including but not limited to news agencies). Establishment of resident news agencies in China and assignment of resident reporters to China by foreign news agencies shall be subject to approval by the Chinese Government. Provision of news services by foreign news agencies in China shall be subject to examination and approval by the Chinese Government. The business cooperation between Chinese and foreign news agencies shall be led by the Chinese Party and be subject to the approval of the Chinese government.)25.Investment in editing, publishing and production of books, newspapers, periodicals, audio-visual products and electronic publications shall be prohibited. However, upon approval by the Chinese government, the Chinese and foreign publishing entities may carry out Sino-foreign cooperative press and publication projects, provided that they ensure the business leadership and the right of final review of contents of the Chinese party to the cooperation and comply with other conditions specified in the Chinese government's approval. Without approval by the Chinese Government, provision of financial information in China shall be prohibited.)26.Investment in various levels of radio stations, television stations, radio and television channels (frequencies), radio and television transmission network (transmitter stations, relay stations, radio and television satellites, satellite uplink stations, satellite relay receiver centres, microwave stations, surveillance stations and cable radio and television transmission network, etc) shall be prohibited, and engaging in radio and television video on-demand business and installation of ground receiving facilities for satellite television and radio programs shall be prohibited. (Landing of overseas satellite channels shall be subject to examination and approval.)27.Investment in companies producing and operating radio and television programmes (including introduction of businesses) shall be prohibited. (The import of overseas films and TV plays, and the import of other overseas TV programs through satellite transmission shall be applied for by entities designated by the National Radio and Television Administration. A licensing system shall be adopted for the production of TV plays (including TV cartoons) through Sino-foreign cooperation.28.Investment in film production companies, distribution companies, cinema companies and film importation business shall be prohibited. (However, upon approval, Chinese and foreign enterprises are permitted to cooperate in the production of films.)29.Investment in auction companies for heritage auction, heritage stores and State-owned heritage museums shall be prohibited. (Transfer, mortgage and lease of immovable cultural relics and cultural relics prohibited from exportation by the State to foreigners shall be prohibited. Establishment and operation of intangible cultural heritage investigation agencies are prohibited; intangible cultural heritage investigation and archaeological investigation, exploration and excavation in China by overseas organisations or individuals shall adopt the form of cooperation with China and be subject to special examination and approval and licensing.)30.Artistic performance groups shall be controlled by the Chinese Party.
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