China Ends Foreign Investment Limits in Manufacturing

China's National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOC) have announced the removal of restrictions on foreign investment in the manufacturing sector, effective November 1. The upcoming 2024 version of the negative list for foreign investment access will reduce the number of restrictions from 31 to 29, achieving zero restrictions in the manufacturing sector. This measure is part of broader efforts to promote a higher level of economic openness and facilitate foreign investment.

The only remaining restrictions pertain to the publication and printing industries, which must be controlled by Chinese parties, and certain processing techniques for traditional Chinese medicine. The NDRC and MOC will collaborate to further implement the system of pre-establishment national treatment plus a negative list. This move aims to build a new system for a higher-level open economy, reflecting China's commitment to investment liberalization and global cooperation.