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China announces plans for pilot free trade zones
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CHINA released more details for regarding pilot free trade zones (FTZ) in Guangdong, Tianjin and Fujian as well as plans to further reform and open up the Shanghai FTZ on Monday.
The master plan is a crucial step for the country to promote reform and opening up, boost trade and facilitate investment, according to a statement released by the State Council, or the cabinet.
A "negative list" approach, which specifies investment sectors off-limits to foreign investors, will be trialed in the pilot FTZs, the statement said.
Under the "negative list", also released on Monday, FTZ foreign investments will be prohibited in sectors such as certain non-ferrous metal mining, air traffic control systems management, postal enterprises and production of radio and television programs.
Foreign investments are restricted to joint ventures with domestic companies in sectors such as oil and natural gas exploration and development, general-purpose airplane design, manufacture and maintenance as well as rare earths smelting, according to the list.
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