By Zhang Qi & Sun Fei, Research Team on "Building a New Open Economic System", Research Department of Foreign Economic Relations of DRC

Research Report No 71, 2015 (Total 4756)

Abstract:

The environment of global economy is experiencing profound changes while China is deepening its reform across the board. Against such a backdrop, pushing forward reform of foreign investment access system is not only a major effort of China to accommodate with the new round reconstruction of global economic and trade rules, but also a necessary part of the new open economic system and a significant expression of promoting reform through opening up. At present, the general objective of foreign investment access system reform is centered on institutional innovation through streamlining administration, delegating more powers to lower level governments and improving regulation. By relaxing restrictions on foreign investment market access, improving security review system for foreign investment, promoting investment facilitation and building an internationalization- and law-based marketing environment, China will become more attractive for trans-national investment and the regulation system for foreign investment in China will be further enhanced. To be specific, several key questions should be properly treated including: 1. The appropriately handling of the relations between the negative list with Shanghai FTZ list and Industrial Guidance Catalogue on foreign investment; 2. The improvement of security review system and risk prevention system; and 3. The coordination between legal protection and administration departments.