Special Administrative Measures for Foreign Investment Access to the Hainan Free Trade Port (Negative List) (2020 Edition)

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Notes

I. The Special Administrative Measures for Foreign Investment Access to the Hainan Free Trade Port (Negative List) (hereinafter referred to as the "FTP Negative List") uniformly set out special administrative measures for foreign investment access regarding equity requirements and requirements for senior management, and shall apply to the entire Hainan Island. Sectors not covered in the FTP Negative List shall be subject to administration in accordance with the principle of equal treatment for domestic and foreign investments.

II. Overseas investors are forbidden to engage in investment activities as individual businesses, investors of sole proprietorships, or members of farmers' professional cooperatives.

III. In the course of performing their duties in accordance with the law, the relevant competent authorities shall refuse to handle a license, business registration, or any other related matter for any overseas investor intending to invest in a sector covered in the FTP Negative List but not in compliance with the provisions of the FTP Negative List; and refuse to handle the relevant approval matters if the approval involves any fixed-asset investment project. Overseas investors shall no establish foreign-invested partnerships when investing in sectors with equity requirements.

IV. After being examined by the relevant competent authority under the State Council and reported to the State Council for approval, specific foreign investments are not required to be subject to the provisions of the FTP Negative List on the relevant sectors.

V. Mergers and acquisitions of affiliated domestic companies by domestic companies, enterprises, or natural persons via the companies legally established or controlled overseas thereby shall be handled in accordance with the relevant provisions on foreign investments, overseas investments, and foreign exchange administration.

VI. Measures concerning administrative examination and approval, qualification requirements, and national security in such sectors as culture and finance, which are not set out in the FTP Negative List, shall be governed by existing provisions.

VII. Where the Mainland and Hong Kong Closer Economic Partnership Arrangement and its follow-up agreements, the Mainland and Macao Closer Economic Partnership Arrangement and its follow-up agreements, the Cross-Straits Economic Cooperation Framework Agreement and its follow-up agreements, and any international convention or treaty of which China is a contracting state or to which China has acceded set out provisions on access treatment for overseas investors that are more preferential, such provisions shall prevail.

VIII. The FTP Negative List shall be construed by the National Development and Reform Commission and the Ministry of Commerce in concert with the relevant authorities.

Special Administrative Measures for Foreign Investment Access to the Hainan Free Trade Port (Negative List)

(2020 Edition)

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Translated by the Foreign Affairs Office of Haikou Municipal Government