The improved negative list will add vitality to China's market

Editor's note: The following article is taken from the Chinese-language "Commentaries on International Affairs." The article does not necessarily reflect the views of CGTN.

China on November 22 released a revised negative list for foreign investment market access, cutting the number of sectors and businesses that are off-limits for foreign investors.

It's the first time authorities have made changes to the list since the negative list system was fully implemented late last year. The revision is expected to further stimulate market vitality and enhance the attractiveness of China's market to foreign capital.

Twenty items – 13 percent of the total – have been cut from the list of industries and business sectors where foreign investment was either prohibited or restricted. The 2019 version of the negative list, which applies to both domestic and foreign investors, will also nullify over 20 regionally-managed negative lists.

These are major steps in the development of a more stable and unified business environment for all market players, especially small and medium-sized enterprises.

One example of the effect of these changes is that market access has been eased for investors looking to establish nursing homes and social welfare institutions. Given that 250 million, or nearly 18 percent, of China's population is aged 60 or above, this unleashes the potential of an already enormous market in a country with an ageing society.

The number of companies newly registered each day reached nearly 20,000 in the first 10 months of the year, and is expected to further increase based on the remarkable growth recorded last year.

At the same time, there were over 33,000 newly registered foreign-funded firms on the Chinese mainland. The actual use of foreign capital grew by 6.6 percent over the same period last year to surpass 750 billion yuan (around 107 billion US dollars), with the annual growth rate reaching 7.4 percent in October alone.

The further improved negative list system will reinforce the confidence that foreign investors have in China's market, and will hopefully lead to an increase in the amount of foreign capital flowing into its economy.