China Issues Guidelines to Improve Market Access

Aug. 21 2024 (InvestinChina.asia) – In an effort to deepen market reforms and enhance the role of both the market and the government, China has unveiled new guidelines to improve its market access system. The directives, issued by the Central Committee of the Communist Party of China (CPC) and the State Council, aim to create a more open, transparent, and competitive market environment.

The main points of the guidelines include:

1. Negative List Management for Market Access: All market access restrictions imposed by laws, regulations, and local rules will be included in a unified national negative list. This list will be dynamic and publicly disclosed, allowing all business entities to enter areas not covered by the list.
2. Rules for Market Access: Sectors facing competition will see fewer entry barriers, while those critical to national security, the economy, and public interest will remain subject to oversight. The government will prevent monopolistic companies from leveraging their dominance to stifle competition.
3. Rules for Market Access and Operation: For sectors requiring government control, clear rules and procedures will be established, including the criteria for market entry, licensing requirements, and operational standards. Unapproved entry or disguised licensing under the guise of registration will be prohibited.
4. Adjustment Procedures for Market Access Measures: Before introducing or altering market access measures, the relevant authorities must conduct thorough assessments and follow legal procedures. Temporary measures may be implemented in cases where there is a risk of significant economic disruption.
5. Policy Coordination for Domestic and Foreign Investment: Policies will ensure equal treatment for domestic and foreign investments. Where foreign investment restrictions are lifted, similar changes will apply to domestic investors. Special economic zones will explore more efficient and secure models for foreign and domestic investment coordination.
6. Service Industry Access Relaxation: Restrictions on service industries that do not affect national security or social stability will be gradually removed. Standards for entering fields like education, healthcare, and sports will be optimized.
7. Enhancing Access for Emerging Industries: Efforts will focus on deep-sea exploration, aerospace, life sciences, renewable energy, artificial intelligence, and other emerging sectors. Policies will be streamlined to facilitate innovation and the application of cutting-edge technologies.
8. Pilot Programs for Market Access: Strategic industries and future-oriented sectors will benefit from pilot programs that loosen market access restrictions. Effective measures can be replicated in broader regions.
9. Implementation and Oversight: Regular evaluations will be conducted to ensure the effectiveness of the market access system. Any violations will be addressed, and a comprehensive regulatory framework will be established.
10. Implementation and Operations: Authorities at all levels must align their actions with central government directives, ensuring effective implementation and continuous assessment.