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Under the new Investment Law 2020, which will take effect on 1 January 2021 (“New Investment Law”), the most notable change is the introduction of the “negative list” approach, according to which foreign investors will be entitled to market access conditions applicable to domestic investors for any sectors not included in the list of sectors, which foreign investors are restricted from accessing ("List of Restricted Sectors").
The government recently released a draft regulation that guides market access by foreign investors and provides the List of Restricted Sectors applicable to the foreign investors, which is to be included in the decree guiding the implementation of New Investment Law (“Draft Decree”).
The Draft Decree provides the List of Restricted Sectors detailing: (i) the sectors where market access is not yet allowed; and (ii) the sectors where market access is conditional. The List of Restricted Sectors is attached in the appendix of this client alert.
The Draft Decree also provides that the List of Restricted Sectors is applicable to foreign investors and foreign foreign-invested economic organizations in the following cases, when they make investments by way of establishing a new economic organization, acquiring shares and capital contribution in an existing entity, or entering into business cooperation contracts:
List of Restricted Sectors
A. List of sectors where market access is not yet allowed
B. Sectors where market access is conditional
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