subtitle: Regulatory Optimization and Deepening Openness

On April 24, 2025, China’s National Development and Reform Commission, the Ministry of Commerce, and the State Administration for Market Regulation jointly released the latest version of the “Market Access Negative List (2025 Edition).” This list functions as the core mechanism for market access management, uniformly applicable to all market entities within China, regardless of their capital sources. This new policy represents a significant advancement in the government’s coordinated efforts toward “streamlining administration and delegating power” and promoting high-level openness.

I. Core Policy: “Subtraction” to Unleash Vitality, “Addition” to Strengthen Bottom Lines

The total number of entries in the 2025 version of the list has been reduced from 117 in the 2022 version to 106, reflecting a cumulative decrease of approximately 30% compared to the first version in 2018.

Market Liberalization to Energize Dynamics

• Continuous Streamlining of National Measures: Since the first version in 2018, the total number of entries has been reduced by 30%, with local measures decreasing by 44%. For instance, the approval processes for public seal engraving and sales of computer security products have shifted from licensing to record-filing or certification systems, lowering compliance costs for businesses.
• Deregulation in Key Areas: Approvals for television production, drug wholesale and retail establishment, and new telecommunications pilot programs have been eliminated, fostering market competition in healthcare, culture, and technology sectors. The removal of local barriers in transportation logistics and bulk commodity trading accelerates the formation of a unified national market.

Precision Regulation for Safety Assurance

• Proactive Norms in Emerging Fields: Stricter entry norms have been introduced for high-risk areas such as drones, e-cigarettes, and online drug sales, balancing innovation with risk management.
• Clear Bottom-Line Thinking: Adjustments to the list are based on legal regulations to prevent disorderly conduct following deregulation, ensuring a dynamic balance between reform and safety.

II. Mechanism Innovation: Building a “Single National List” Governance System

Strengthening List Authority

All types of industries, investments, internet sectors, and key ecological function areas must be compiled according to requirements and included in the management of the market access negative list. Any amendments that raise market access thresholds must follow the procedures for negative list measures and be reported to the State Council for approval, preventing local or departmental “extra thresholds” and curbing hidden barriers.

Regional Pilot and National Rule Alignment

It is clarified that when adjusting or suspending market access management measures in specific regions, support is provided for designated areas (e.g., free trade zones) to explore relaxed access, ensuring local innovations align with the national framework.

Transparency and Convenience Upgrades

Access matters must have publicly available standards, timelines, and processes, promoting “sunshine approval.” Record-filing management strictly prohibits disguised licensing, reducing institutional costs for enterprises.

III. Openness Dimension: Deepening “Same Rules Competition” for Domestic and Foreign Investment

Parallel Negative Lists for Foreign Investment

The unified application of the negative list for domestic entities ensures national treatment.

Foreign investors in China must simultaneously adhere to the “Foreign Investment Negative List” and the “Special Management Measures for Cross-Border Service Trade (Negative List),” embodying the principle of “equality after entry.”

Breaking Local Protectionism

Restrictions imposed by local governments on shipbuilding and alcohol sales have been lifted, promoting fair competition for domestic and foreign enterprises nationwide.

IV. Strategic Intent and Long-Term Impact

Accelerating Business Environment Optimization

The simultaneous advancement of list streamlining and barrier removal directly addresses enterprises’ concerns about “access difficulties,” boosting market confidence.

Supporting High-Quality Development

By unleashing vitality in the service and technology sectors, this reform promotes industrial structure upgrades. The construction of a unified national market lays the foundation for expanding domestic demand and facilitating the flow of innovative elements. The Chinese market will become more open and dynamic, providing robust support for high-quality economic development.

Enhancing International Competitiveness

Aligning the negative list with international norms increases China’s market appeal to global capital, especially in critical areas such as the digital and green economies.

V. Enhancing Global Competitiveness

Aligning Negative Lists with International Standards

China has been actively promoting the alignment of the negative list with international rules to enhance market openness and attract global capital. This includes coordination with international agreements such as the Regional Comprehensive Economic Partnership (RCEP) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), aimed at promoting trade and investment liberalization.

Reducing Restrictive Measures

In recent years, China’s foreign investment negative list has been significantly reduced. For example, the 2024 version of the national negative list decreased restrictive measures from 31 to 29. This initiative expands market access for foreign investment in various sectors, including manufacturing.

Attracting Global Capital in Key Areas

• Digital Economy: The adjustments to the negative list create a more favorable environment for attracting foreign investment in the digital economy. By reducing restrictions and providing clearer guidelines, China aims to draw more foreign capital into this sector. The latest revisions further open market access for digital services and e-commerce.
• Green Economy: China is also focusing on attracting investment in the green economy. Adjustments to the negative list encourage foreign investment in renewable energy, green technology, and environmental protection, aligning with China’s broader goals of sustainable development and carbon neutrality.

Enhancing Market Attractiveness

• Boosting Market Confidence: The continued reduction of the negative list and alignment with international rules enhance foreign investors’ confidence in the Chinese market. China’s vast market size, robust infrastructure, and rich human resources make it an attractive destination for global capital.
• Supporting High-Quality Development: These initiatives are part of China’s strategy to promote high-quality economic growth. By attracting more foreign investment, particularly in high-tech and green sectors, China aims to enhance its innovation capacity and economic competitiveness. The alignment of the negative list with international norms boosts China’s appeal to global capital, especially in key areas such as the digital and green economies.

Find the list here:  https://www.ndrc.gov.cn/xxgk/zcfb/ghxwj/202504/P020250424307430450848.pdf

Related Article: Recent Update on Foreign Investment Access Special Management Measures