11 New Laws Affect Your Chinese Business (1-6)
Multiple new laws and regulations that affect doing business in China will come in force on January 1, 2022. Foreign investors and businesses engaging in cosmetics, food and beverage, import and export, and elder care should pay special attention.
Multiple new laws and regulations that affect doing business in China will come in force on January 1, 2022. Foreign investors and businesses engaging in cosmetics, food and beverage, import and export, and elder care should pay special attention.
With the New Year Holiday approaching, many new laws and regulations that may affect your business and everyday life will also come into effect soon.
In this article, we list out 11 laws, regulations, or national standards that will take effect on January 1, 2022 and shortly explain why it matters to you.
（1）Negative Lists for Foreign Investment Access
Promulgation Authorities: National Development and Reform Commission (NDRC), Ministry of Commerce
- Release Date: 2021.12.27
- Effective Date: 2022.01.01
- Doc Number: Decree No.47 and Decree No. 48 of the NDRC and the Ministry of Commerce
The National Development and Reform Commission and the Ministry of Commerce released the Special Administrative Measures (Negative List) for Foreign Investment Access (2021 Edition) (“2021 National Negative List”, English translation available here) and the Special Administrative Measures (Negative List) for Foreign Investment in Pilot Free Trade Zones (2021 Edition) (“2021 FTZ Negative list”, English translation available here) on December 27, 2021 to be implemented from January 1, 2022.
Why this matters? It’s all about market access.
These two negative lists enumerate the industries where foreign investment will either be prohibited or restricted. All foreign investment needs to follow the special administrative measures, such as the cap on the share ratio of foreign investment, set in the corresponding negative lists.
The 2021 National Negative List and the 2021 FTZ Negative List were shortened to 31 and 27 items, respectively. Both the lists further widened the opening of the automobile manufacturing and the radio and TV device manufacturing sectors.
The FTZ Negative List removed all the entries relating to the manufacturing sector and proposed to explore the possibility of relaxing the foreign investment access to the services sector, including market research and social surveys. The negative lists also clarify restrictions on Chinese companies operating in fields that are restricted from receiving foreign capital, including overseas listing of such companies.