China’s Negative List is getting shorter, indicating more areas are opening up to foreign investment. Over the years, sectors once considered off-limits or heavily restricted—such as telecommunications, energy, and financial services—have gradually been made more accessible. This shift reflects China’s continued commitment to fostering a more open and competitive business environment, aligning with global economic trends, and attracting diverse forms of capital. The reduction in restrictions not only provides foreign investors with new opportunities but also demonstrates China’s willingness to integrate into the international economy on deeper levels, supporting innovation, technology transfers, and economic growth.

China’s Manufacturing Fully Open to Foreign Investment

On August 19, the State Council reviewed and approved the “Special Administrative Measures for Foreign Investment Entry” called “Negative List” (2024 Edition). From the perspective of manufacturing, China’s Negative List for this sector has essentially been cleared.

The latest version of the Negative List will not bring any radical changes to current foreign investment fields, as the 2021 version had already reduced manufacturing restrictions to two sectors: “Publication printing must be controlled by Chinese entities” and “The application of processing techniques such as steaming, frying, roasting, and calcining of traditional Chinese medicine, as well as the production of traditional Chinese medicine formulas must remain confidential.” However, the release of the 2024 version indicates the complete nationwide opening of manufacturing to foreign investment. During the meeting, it was also suggested to proactively promote the opening of service sectors such as telecommunications, internet, education, culture, and healthcare, which sends a positive signal to the foreign investment market and reflects the Chinese government’s growing efforts to attract and stabilize foreign capital.

Bright Future for Modern Service Sectors

In March this year, the Ministry of Commerce issued the “Special Administrative Measures for Cross-Border Trade in Services (Negative List) (2024 Edition),” marking the first time a Negative List management system was established nationwide for cross-border service trade.

We can also expect China to introduce a series of initiatives in the capital market to encourage foreign investment. China will further ease restrictions on foreign strategic investments in listed companies, broaden foreign investment channels, and guide more high-quality foreign capital into the capital market for long-term investments.

The Era of National Treatment for Foreign Investment Has Arrived

Moreover, China’s central government has emphasized the implementation of national treatment for foreign enterprises, allowing all types of business entities to enter sectors outside the Negative List on equal terms under the law. This guarantees foreign enterprises’ national treatment in areas such as resource access, qualification approvals, standard-setting, and government procurement. They will also be equally supported in participating in large-scale equipment upgrades and government procurement projects.

Amid changes in geopolitics, trade rules, and industrial chain restructuring, China’s core appeal to foreign investment is constantly evolving. The country is transitioning to a new phase of “stock optimization and high-quality growth” from its previous focus on scale. As the Negative List for foreign investment continues to shrink, it reflects China’s firm commitment to expanding high-level openness, attracting more multinational enterprises to come and pursue shared development.