China publishes economic zone and financial services market changes

Out-Law News | 04 Feb 2021 | 7:00 am | 1 min. read

China will open up some geographic and sectoral markets, change data sharing rules and invest in infrastructure as part of a plan that its government said would create better market mechanisms. 

Moves will include the introduction of basic market mechanisms, opening up of some markets and changes to regulation, according to the plan.

China will implement a negative list system for market access and establish pilot projects for market access systems. According to the plan, measures will be taken to open market access in Hainan free trade port; to build an early demonstration zone of socialism with Chinese characteristicsin Shenzen, and in Hengqin to establish an in-depth cooperation zone with Guangdong and Macau.

New data sharing responsibilities will be created and introduced for data sharing and exchange between regions and departments.

There will be investment in new infrastructure such as 5G mobile networks, and investment in artificial intelligence, cloud computing and blockchain, data centres and intelligent computing centres.

The plan also includes measures for further opening the financial services market, allowing the establishment of foreign-owned banks and securities companies, and wholly foreign-owned or joint venture asset management companies.

It will improve the pre-entry national treatment plus negative market access list management system, further shortening the negative list for foreign investment, expanding the list of industries encouraged by foreign investment.

Leo Xin at Pinsent Masons, the law firm behind Out-Law, said: “In order to implement the plan, it will be seen that the legislation process in terms of high-level market system establishment will also be accelerated. For example, the law in relation to the efficient use of the land resources will be improved, and for the data resources, new laws and regulations will be enacted to regulate the trade and exchange of data.”