China has taken another bold step toward economic liberalization by slashing its market access negative list—a regulatory framework outlining sectors restricted to domestic and foreign investors—from 117 to 106 items. The move, announced by the National Development and Reform Commission (NDRC), marks the latest effort to stimulate business vitality and reduce bureaucratic hurdles in the world’s second-largest economy.
Lowering Barriers, Encouraging Innovation
The revised list, replacing the 2022 version, eliminates several restrictive measures, signaling a shift toward a more open and efficient market. Among the key changes, the seal engraving industry has transitioned from a licensing system to a simpler filing process, reducing red tape for entrepreneurs.
Additionally, sectors like TV drama production and new telecom services have seen streamlined entry procedures, though necessary regulatory oversight remains. Meanwhile, regional restrictions—such as those governing ship design, construction, and alcohol production—have been abolished in favor of a unified national standard.
Adapting to New Economic Realities
The updated list also addresses emerging industries, including regulations for civilian unmanned aerial vehicles (UAVs), reflecting China’s push to integrate cutting-edge technologies into its regulatory framework. Since its inception in 2018, the negative list has undergone four revisions, shrinking from 151 items to 106—a nearly 30% reduction in restrictions.
Guo Liyan, a researcher at the NDRC’s Economic Research Institute, emphasized that the negative list management model—which permits market entry in all sectors not explicitly barred—has drastically cut approval times and dismantled unnecessary barriers. “This approach aligns with China’s broader strategy to create a unified national market and foster high-quality development,” Guo noted.
A Clear Path Toward Market Reform
The latest revision underscores Beijing’s commitment to optimizing the business environment and building a high-standard market system. By systematically removing obstacles, China aims to attract more investment, spur innovation, and enhance economic efficiency.
As the country continues refining its regulatory landscape, businesses—both domestic and international—stand to benefit from a more transparent and accessible marketplace. The steady reduction of the negative list over the past seven years highlights China’s evolving economic philosophy: fewer restrictions, greater dynamism.
