China announces restrictions on foreign investment in manufacturing sector to be lifted


(MENAFN) On Sunday, China’s top economic planner announced that restrictions on foreign investment in the manufacturing sector will be removed with the introduction of the 2024 version of the negative list for foreign investment access. This revised list, set to take effect on November 1, 2024, has reduced the number of restricted areas from 31 to 29. Notably, it eliminates all restrictions on foreign investment within the manufacturing sector, signaling a significant shift in China's economic policy.

The release of this updated negative list is a key element in China's strategy to build a more open and competitive economy. According to an official from the National Development and Reform Commission (NDRC), this change represents a critical step towards establishing a new, higher-level open economic system. The removal of these restrictions aims to enhance China's attractiveness as a destination for foreign investment and to foster a more dynamic industrial sector.

The NDRC, in collaboration with the Ministry of Commerce (MOC) and other relevant departments and regions, will be responsible for implementing the new system. This system includes pre-establishment national treatment plus a negative list, which will now have fewer restrictions. The NDRC's focus will be on ensuring the effective and timely rollout of these new opening measures, which are intended to further integrate China into the global economy.

This policy shift underscores China’s ongoing efforts to create a more favorable environment for foreign investors and to support its broader economic reform agenda. By removing barriers to investment in the manufacturing sector, China aims to attract more international businesses and enhance its industrial capabilities, ultimately contributing to the country's economic growth and development.

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