The People's Republic of China has taken another step towards expanding economic openness, easing access for foreign investors to a number of sectors in its market. According to a new edition of the so-called "negative list" published by the National Development and Reform Commission (NDRC) together with regulatory authorities, the number of sectors with restrictions or bans on foreign investment has been reduced from 117 to 106.

CNBC reported on the changes, noting that the list is a key tool for the Chinese government to regulate the access of foreign capital to various sectors of the economy. The list was first published in 2018 and has been updated since then to adapt to changes in the domestic and global economic situation.

This year’s easing of restrictions comes as China faces serious economic challenges, including weak consumer demand, a property debt crisis and the threat of increased trade pressure from the United States. In such circumstances, the authorities are trying to stimulate the domestic market and attract additional foreign capital.

The National Development and Reform Commission stressed that the new version of the 2025 list “lowers barriers to entry and stimulates market dynamics.” The list partially liberalizes sectors such as television equipment manufacturing, telecommunications services, online platforms for providing information on pharmaceuticals and medical equipment, as well as the import of forest tree seeds and the use of radioactive substances in medical institutions.

Local government agencies are also recommended to increase openness in the areas of transportation, logistics, freight forwarding and vehicle rental services. Such actions are aimed at improving the business climate for foreign investors and boosting domestic competition.

Despite liberalization steps, China has kept a number of industries under strict control. In particular, investment in the production and maintenance of unmanned aerial vehicles, as well as in the production of new tobacco products, including electronic cigarettes, remains prohibited for foreign capital. As the regulator noted, such restrictions are maintained to "ensure safe profits," although the details of such measures are not specified.

Thus, China demonstrates its desire to balance the protection of national interests and the creation of more attractive conditions for foreign investors. The new "negative list" is part of a broader strategy to adapt the economy to changes in the world order and domestic challenges.