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In the past several months, China has announced and
started to implement a “negative list” program that allows foreign co
mpanies to have 100 percent ownership in inve
stments in all ar
eas of the economy, excep
t for a small number of areas, such as telecoms and defense, that are explicitly prohibited.
Also, foreign investment has been simplifie
d by creating a on
e-stop regulatory shop and a single application process.
These new policies will lead to greater competition within China, forcing C
mpanies to becom
e more efficient and to produce higher quality products.
The Chinese government has also recently announced tax cuts and financial regulations desi
gned to help private companies. This will hasten the ongoing transition to a market-driven economy.
enterprises are not relevant to trade negotiations. Many are in non-tradable sectors such as p
roperty development, infrastructure, or concrete. Others are basically public utilities in telecoms or power.