A Study On The Investment Admission System Of China (Shanghai) Free Trade Experimental Zone

China(Shanghai) Pilot Free Trade Zone(hereinafter referred to as “Shanghai Free Trade Zone”) is the first formal free trade zone established in China.Shanghai Free Trade Zone has tried out a number of new systems and regulations that conform to the international standards. Among all the new systems that have been tried out, the most innovative one is that Shanghai Free Trade Zone began to implement Pre-Establishment National Treatment and Negative List as the management mode of investment access.To this day, Pre-Establishment National Treatment and Negative List have been implemented in the Shanghai Free Trade Zone for more than two years and they have been applied to other free trade zone in our country.Moreover, the central government has made a decision that by the year of 2018, the Negative List will be applied across the whole country. In practice, there are still many problems with this mode while it is used in Shanghai Free Trade Zone. The Negative List is too long and complex,which contradicts with the purpose of using this mode.The legislative is not clear, which is not conducive to maintain the unity and coordination of the contents of the Negative List, thus hindering its promotion in the country. The uncertainty of the Negative List’s contents and modification time causes its lack predictability, which isn’t conducive to foreign investors. The regulations about Pre-Establishment National Treatment aren’t specific enough, which may cause big troubles in the future. Because the related provisions aren’t specific, the Negative List has not been properly implemented, which cause foreign investors cannot be entitled to national treatment. However, the process of trying new things is always full of problems. Shanghai Free Trade Zone should not give up eating for fear of choking.It should keep using this advanced mode and gradually modify it in the process.It should take the legislative power of the Negative List back to the central government and enhance the unity and coordination of it. By this way, it is easier for other parts of China to accept this mode. In addition, the modification time of the Negative List should be pre-settled and the modification process should be noticed to the public. Hence, the predictability of the Negative List is strengthened, which will facilitate foreign investment. Moreover, we should continue reducing the contents of the Negative List and expanding our opening field, making it more and more conform to the international standards. Last but not least, we should keep improving relevant legislation, primarilyabout implementation of the Negative List and specific aspects of the Pre-Establishment National Treatment.