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October 20, 2015

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鈥楴egative list鈥 stance to continue

CHINA will pilot a “negative list” approach, which identifies sectors and businesses that are off-limits or restricted for investment, in some regions from December 1, 2015, to December 31, 2017, authorities said yesterday.

The aim is to explore a system that could be replicated nationwide for application in 2018 to streamline government administration and give more freedom to the market, according to a published guideline.

The “negative list” approach is a common practice adopted in many countries to manage foreign investment. China first piloted the rules in the Shanghai free trade zone in 2013.

By extending the approach to cover domestic businesses, China looks to unleash more vitality in the private industry as the economy slows.

Wang Yukai, professor with the Chinese Academy of Governance, said the move will help cut the threshold for investment and business startups to tap the potential of various market entities.


 

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