Experience Of Negative List Model And Enlightenment On China's Foreign Investment Management

As the largest developing country in the world, China makes great progress on foreign investment management. But still there are lots of problems such as market access and market surveillance to be solved. On 20 April 2015, Chinese State Council officially announced the administrative measures of special treatment (2015 Free Trade Zone Negative List) on foreign investments which is applicable to all four Pilot Free Trade Zones. Chinese government will actively promote development of PFTZs in Shanghai, Tianjin, Guangdong and Fujian and replicate the successful experience nationally, in order to form distinctive reform areas amongst China. Negative list, as a real international foreign investment management approach, refers to an industry list about foreign investment that a country bans or limits, which is opposite to the case of "positive list". China will relax market access, streamline administrative approvals and strengthen market supervision to build an open, equitable and well-regulated market in which companies can make independent decisions and participate in fair competition.Negative list system in foreign countries has grown more mature, both multilateral and bilateral agreement can provide lots of experiences and enlightenment for China. It offers a chance for China to embrace the reshaping of the global trade and investment system. There is no doubt that negative list management trial of the free trade zone in China, not only promoted the development of Chinese economy, making it more adaptable to the new trend of global economic development, at the same time, it means our innovation of management concept. The reverse thinking of "deeds are available without law banned" contributes to help us solve the existing and possible problems in economic and political system so as to gradually increase the level and scale of opening-up, to create a fair market competition environment for all enterprises, to improve the vitality and level of economic development. At the same time, the combination of pre-entry national treatment and the negative list creates a big challenge to China and poses a threat to its domestic industries and economic security. It must strike a balance between economic security and openness, make the combination of legislation and the judicial system, and focus on the protection of key industries to make negative list system institutionalized.