On 27 December 2021,  the National Development and Reform Commission and the Ministry of Commerce of the PRC jointly released  the Special Administrative Measures (Negative List)  for Foreign Investment Access (2021 Edition) (hereinafter referred to as the "2021 National Negative List for Foreign Investment Access") and the Special Administrative Measures (Negative List) for Foreign Investment Access in Pilot Free Trade Zone (2021 Edition) (hereinafter referred to as the "2021 FTZ Negative List for Foreign Investment Access") on their website respectively. The two negative lists shall come into force on 1 January 2022. If the current regulations need to be adjusted, the relevant departments shall complete the relevant adjustment within 2 years accordingly.

The major changes of the 2021 National Negative List for Foreign Investment Access are as follows:

1. The following provision has been added to the explanatory notes: Foreign invested enterprises investing in China shall comply with relevant provisions of the Negative List for Foreign Investment Access.
2. The following provision has been added to the explanatory notes: Domestic enterprises engaged in businesses in fields prohibited from investment mentioned in the Negative List for Foreign Investment Access shall be examined and approved by the relevant competent authorities of the state for issuing shares abroad and going public for trading. Overseas investors shall not participate in the operation and management of the enterprises, and their equity ratio shall be governed by reference to the relevant regulations on the management of domestic securities investment of overseas investors.
3. The cap on foreign ownership in passenger car manufacturing has been removed. Restrictions on a foreign investor establishing more than two joint ventures in China to produce the same vehicle product have also been lifted.
4. Restrictions on foreign investors producing on-ground receiving facilities and key components for satellite television and radio broadcasting have been lifted, and foreign and domestic investment will be treated equally.

The major changes of the 2021 FTZ Negative List for Foreign Investment Access are as follows:

1. The following provision has been added to the explanatory notes: Foreign invested enterprises investing in FTZ shall comply with relevant provisions of the FTZ Negative List for Foreign Investment Access.
2. The following provision has been added to the explanatory notes: Domestic enterprises engaged in businesses in fields prohibited from investment mentioned in the FTZ Negative List for Foreign Investment Access shall be examined and approved by the relevant competent authorities of the state for issuing shares abroad and going public for trading. Overseas investors shall not participate in the operation and management of the enterprises, and their equity ratio shall be governed by reference to the relevant regulations on the management of domestic securities investment of overseas investors.
3. Restrictions on foreign investment in the manufacturing sector have been lifted.
4. Restrictions on foreign investment access to market research have been lifted, but Chinese investors must be the controlling shareholders of enterprises in the radio and TV ratings survey sector.
5. Foreign investors are allowed to enter social research industry, but the shares held by Chinese investors shall not be less than 67%, and the legal representative must be a Chinese citizen.

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