The National Development and Reform Commission and the Ministry of Commerce of the PRC released the Special Administrative Measures for Foreign Investment Access (Negative List) (2024 Edition) on 8 September 2024. The new Negative List for Foreign Investment Access has completely lifted restrictions on foreign investment access in the manufacturing sector. It will be implemented from 1 November 2024 and supersede the 2021 Negative List for Foreign Investment Access.

The 2024 Negative List for foreign investment access has removed the two remaining restrictive measures in the manufacturing sector as contained in the 2021 Edition of the Negative List for foreign investment access, i.e.:

1. The printing of publications shall be controlled by the Chinese party.
2. Investment in the application of steaming, frying, roasting, calcining, and other processing techniques of traditional Chinese medicine decoction pieces as well as the production of confidential prescription products of proprietary Chinese medicines shall be prohibited.

Upon the implementation of the new Negative List for Foreign Investment Access on 1 November 2024:

1. Foreign investment in publication printing will no longer have shareholding restrictions.
2. Foreign investors will be allowed to invest in the application of steaming, frying, roasting, calcining, and other processing techniques of traditional Chinese medicine decoction pieces, and the production of confidential prescription products of proprietary Chinese medicines.

KAIZEN Group is equipped with experienced and highly qualified professional consultants and is therefore well positioned to provide professional advices and services in respect of the formation and registration of company, application for various business licences and permits, company compliance, tax planning, audit and accounting in China. Please call and talk to our professional consultants for details.