The National Development and Reform Commission (NDRC) of China has announced the release of the Special Administrative Measures for Foreign Investment Access (Negative List) for the year 2024, which will come into effect on November 1, 2024, rendering the previous 2021 version obsolete. This updated Negative List reflects a continued effort to liberalize foreign investment in certain sectors of the Chinese economy.
The 2024 edition has streamlined the number of restrictive measures from 31 to 29. Notably, the list no longer includes the stipulation that “publication printing must be controlled by the Chinese side,” and it has removed the prohibition on foreign investment in “the application of processing technologies such as steaming, frying, roasting, and forging of Chinese herbal medicine slices and the production of confidential prescription products of Chinese patent medicine.” This change paves the way for foreign entities to invest in the traditional Chinese medicine (TCM) manufacturing sector.
Furthermore, a significant alteration is observed in the previously consistent measure that “prohibits investment in human stem cells and genetic diagnosis and treatment technology development and application.” In line with the Ministry of Commerce’s “Notice on the Expansion of Pilot Work in the Medical Field,” the updated Negative List now permits foreign-invested enterprises to engage in the development and application of human stem cell and gene diagnosis and therapy technology in designated areas such as the China (Beijing) Pilot Free Trade Zone, China (Shanghai) Pilot Free Trade Zone, China (Guangdong) Pilot Free Trade Zone, and Hainan Free Trade Port, allowing for product registration, listing, and production. – Flcube.com
