In a move aimed at further opening its economy, China’s state planner has trimmed the number of items on its negative list from 117 to 106, signaling a commitment to easing restrictions on foreign investment. The revised list, which outlines sectors where foreign businesses face restrictions or outright bans, is part of broader efforts to improve China’s economic integration with global markets.
The cut in the negative list follows a series of market-friendly reforms and comes at a time when China is working to bolster its economic recovery amid persistent global uncertainty. Beijing’s push for greater economic liberalization is seen as a strategic move to attract more foreign capital and enhance competitiveness in key industries such as finance, energy, and technology.
Foreign investors have long expressed concerns over China’s regulatory environment, particularly in areas like market access and intellectual property protection. The reduction of the negative list is expected to help ease these concerns and provide more opportunities for international companies to expand in the world’s second-largest economy.
Despite the positive signal, analysts caution that China’s political and regulatory landscape may still present challenges for foreign businesses. Trade tensions with major partners and continued control over certain sectors could limit the full impact of these reforms.
The move also comes as China seeks to strengthen its economic ties with other nations, particularly through initiatives like the Belt and Road and the Regional Comprehensive Economic Partnership (RCEP). Experts believe that by loosening restrictions, China aims to become more attractive to international businesses and enhance its role as a global economic power.
