The investment enterprises list 2020 refers to China’s latest negative list for foreign investment access published in 2020. It specifies the industries and areas restricted or prohibited for foreign investment in China. Understanding this list is crucial when foreigners plan to set up companies and invest in China. Some major changes in 2020 include allowing Chinese natural persons to invest in foreign-invested enterprises, simplifying procedures with information reporting system, and more national treatment for foreign enterprises.
Chinese natural persons can now invest in foreign-invested enterprises
The new Foreign Investment Law responds positively to market demand by clarifying the status of Chinese natural persons as qualified subjects for Chinese investors. This creates favorable conditions for fully unleashing private investment enthusiasm and promoting market vitality.
Enterprise establishment procedures simplified with information reporting
On the basis of the filing system, the new regulations further simplify the procedures for enterprises and emphasize establishing a foreign investment information reporting system. New establishments or changes to foreign-invested enterprises no longer need approval and filing through commerce departments.
No more separate categories for Sino-foreign joint ventures
To better reflect the principle of consistency between domestic and foreign investment, the new law simplifies enterprise categories to limited liability companies, joint stock companies and partnerships. No more separate concepts of ‘Sino-foreign joint venture’ or ‘Sino-foreign cooperation’.
More national treatment and unified governance for foreign enterprises
The highest authority of foreign-invested enterprises will now be the shareholders’ meeting, same as domestic enterprises. This helps highlight unified legal attributes and improves corporate governance structures. Foreign-invested enterprises will also follow Company Law and Partnership Law like domestic companies.
The 2020 investment enterprises list continues opening up more industries with a shortened negative list. Major changes include allowing Chinese investors in foreign enterprises, simplifying establishment procedures to information reporting system, canceling previous enterprise categories for foreign investment, and more national treatment in governance structures.