The Analysis On The Problem Of The FTA

Up to now, three sets of negative lists have been released since the establishment of Shanghai Free Trade District. The constant renewal shows our country’s determination to explore the management mode of Pre-Establishment National Treatment and Negative List. Meanwhile it reflects the importance of Negative List for setting free district in our nation. On April 20,2015, the General Office of the State Council issued the negative list the special management measures for foreign investment access in pilot free trade zone. The latest edition lists 122 special management measures, which apply to several free trade districts, including Shanghai, Guangdong, Tianjing and Fujian.However, some factors influence the practice of the negative list. First, the list itself has problems, like insufficient openness, informal expression, lacking of substantial breakthrough in key areas. Second, the list is short of support from domestic law because of the suspension of three laws for foreign investment and the delayed revision of relevant law about the foreign investment management. Thus, it is necessary for the government to transform its function and reinforce supervision during and after the process when the filing system replaced the approval system. Third, the founding of information platform and credit system is lagging. Fourth, the preceding management is stiff. All these make a gap between expectation and reality.The first chapter in the thesis mainly introduces Pre-Establishment National Treatment and Negative List. First, the concept of Pre-Establishment National Treatment will be disclosed. Then the concept, origin and characteristic will be stated at length. In terms of its characteristic, it is often presented by list with different content, high standard of openness, great force, transparency and flexibility. It usually advocates liberation.In the second chapter, it chiefly shows the background about the appearance of negative list management mode in Shanghai free trade district. On the one hand, the new international situation drives its birth, such as WTO system, TPP new trade rule and BIT negotiation between America and China. On the other hand, the domestic economy is transforming and the reformation is deepen its way.The third chapter analyzes the negative list from the perspective of the law. In the first place, it’s actually the expectation of principle, which means it does what the law permits and doesn’t do what the law prohibits. In the second place, the list includes government behavior and market behavior. Both are legal entity. It limits the government’s right of discretion. In the end, the list allows the market entity to get in equally.In the fourth chapter, the deficiency of the management mode will be dissected. There three aspects. First, the list itself has the problems of inefficient openness and limited transparency, informal expression and lacking of substantial breakthrough in key areas. Second, there exits trouble between the negative list and current relevant laws. Third, the management mode is problematical. For example, the matched supervisory system during and after the event is inadequate and the government transforms its function relatively slowly. Furthermore, the filing system makes it more difficult to supervise. Lastly, the absence of information platform and the lagging establishment of credit system, rigid preceding management block its path to practice.The fifth chapter offers a proposal for the management mode. Accordingly, the negative list should be more concise, open and transparent. Besides, it is necessary to speed up to revise the current foreign investment law and reinforce government supervision in the process. Meanwhile, the government should transform its function and streamline its mechanism. Also, it’s essential to complete the social credit system, anti-monopoly investigation and security review system. Lastly, the society power should be encouraged to participate in the supervision.