The Negative List is the cornerstone of China's foreign investment management system. It defines which industries are off-limits or restricted for foreign investors, while everything else is open with "national treatment" — meaning foreign and domestic investors face the same rules. This guide provides a detailed breakdown of the 2026 Negative List, what's changed, and how to determine if your industry is open.
How the Negative List Works
The Negative List operates on a simple principle: "What is not on the list is permitted." Foreign investors can invest freely in any industry not listed, subject only to general regulatory requirements applicable to all businesses.
There are two Negative Lists:
- National Negative List — Applies to all of China
- FTZ Negative List — Applies to Free Trade Zones (shorter, more open)
Prohibited Industries (Foreign Investment Not Allowed)
The following industries are completely prohibited for foreign investment:
| Industry | Details |
|---|---|
| Mining (rare earth, radioactive minerals, tungsten) | Rare earth, radioactive mineral mining prohibited |
| Traditional Chinese medicine | Processing of rare and endangered Chinese medicinal materials prohibited |
| Media & publishing | News organizations, book/magazine/newspaper publishing, audio-visual products |
| Broadcasting | Radio/TV stations, radio/TV transmission networks, film production/distribution (certain aspects) |
| Internet information services | Internet news information services, internet publishing, internet audio-visual programs |
| Chinese character domain names | Registration and management of Chinese character domain names |
| Social surveys | Chinese social surveys (market research allowed with restrictions) |
| Human stem cells & genetics | Research and development of human stem cells, gene diagnosis and treatment technology |
| Weapons & military | Weapons, ammunition manufacturing, military and police equipment |
| Gambling & lottery | Gambling establishments, lottery issuance |
| Religious education | Religious education institutions |
Restricted Industries (Foreign Investment with Conditions)
Restricted industries allow foreign investment but with specific conditions such as equity caps, JV requirements, or senior personnel restrictions:
| Industry | Restriction |
|---|---|
| Crop seed breeding | Requires JV, Chinese partner holds majority (>50%) |
| Wholesale of rice, wheat, corn | Requires JV, Chinese partner holds majority |
| Rare ore smelting | Limited to JV |
| Telecommunications (basic) | Requires JV, foreign equity ≤ 49% (varies by sub-sector) |
| Value-added telecommunications | Foreign equity limits vary (typically ≤ 50%); some sub-sectors open in FTZ pilots |
| Water transport (domestic) | Foreign equity ≤ 49% for domestic water transport |
| Air transport (public) | Foreign equity ≤ 25% for public air transport; GM must be Chinese national |
| General aviation | Foreign equity ≤ 51% for general aviation |
| Shipbuilding/facility construction | Requires JV (some exceptions) |
| Cinema construction/operation | Foreign equity ≤ 49% for cinema construction |
| Performance venues | Foreign equity ≤ 49% for performance venue operation; GM must be Chinese national |
| Securities/futures/asset management | Foreign equity limits (gradually being relaxed) |
| Insurance | Foreign equity limits (life insurance ≤ 50% in most cases) |
| Education (compulsory) | Prohibited for compulsory education; restricted for other types |
| Medical institutions | Restricted (limited to JV in most cities; wholly foreign-owned hospitals allowed in pilot cities) |
What's New in 2025-2026: Key Openings
1. Manufacturing: Fully Open
As of 2024, the manufacturing sector is fully open to foreign investment — there are zero manufacturing items on the Negative List. This means foreign companies can own 100% of manufacturing operations in any manufacturing sub-sector.
2. Healthcare: Wholly Foreign-Owned Hospitals
Wholly foreign-owned hospitals are now permitted in pilot cities: Beijing, Shanghai, Nanjing, Suzhou, Fuzhou, and all of Hainan province. Previously, hospitals were restricted to joint ventures with foreign equity ≤ 70%.
3. Telecommunications: Pilot Openings in FTZs
Pilot programs in Beijing, Shanghai, Hainan, and Shenzhen FTZs now allow:
- Up to 100% foreign equity in internet data centers (IDC)
- Content delivery networks (CDN)
- Online application and data services
- ISP and ICP services (subject to conditions)
4. Education: Expanded Access
Vocational education and skills training have been further opened, with relaxed equity restrictions in FTZs. Compulsory education remains prohibited for foreign investment.
5. Biotechnology: Pilot Opening
In FTZs, foreign investment in biotechnology (including gene therapy and stem cell research) is being piloted with relaxed restrictions under strict regulatory oversight.
National vs FTZ Negative List Comparison
| Industry | National List | FTZ List |
|---|---|---|
| Manufacturing | Fully open | Fully open |
| Value-added telecom (IDC, CDN) | Restricted (≤50% equity) | Pilot: up to 100% in designated FTZs |
| Hospitals | Restricted (JV, ≤70%) | 100% allowed in pilot cities |
| Education (vocational) | Restricted | More relaxed in FTZ pilots |
| Biotechnology | Restricted/Prohibited | Pilot programs in some FTZs |
| Shipping/aviation | Same | Same (some FTZ-specific pilots) |
How to Check if Your Industry Is Open
- Check the Negative List: Review the latest Special Management Measures for Foreign Investment Access (负面清单)
- Check the Encouraged Catalog: If your industry is on the Catalog of Industries for Encouraging Foreign Investment, you may qualify for tax incentives and preferential policies
- Check FTZ-specific lists: If you plan to operate in an FTZ, review the FTZ Negative List for potential openings
- Consult local commerce bureau: For ambiguous cases, consult the local Commerce Bureau or a professional advisor
- Use our Market Access Checker: Enter your industry to instantly check access status
The Encouraged Catalog (Complementary to the Negative List)
While the Negative List defines what's restricted, the Catalog of Industries for Encouraging Foreign Investment defines what's actively encouraged. Benefits of being on the Encouraged Catalog include:
- Import duty exemptions for self-use equipment
- Priority land allocation
- Lower electricity and utility rates in some regions
- Priority for government support programs
- Eligibility for certain tax incentives
Key Encouraged Industries (2025):
- High-end manufacturing and smart manufacturing
- New energy and renewable energy
- Advanced materials
- Biomedicine and healthcare
- Modern agriculture and food safety
- Digital economy and artificial intelligence
- Environmental protection and green technology
- Modern services (finance, logistics, consulting)
- Elderly care and healthcare services
- Cultural and creative industries
Historical Trend: Progressive Liberalization
| Year | Negative List Items (National) | Negative List Items (FTZ) | Key Changes |
|---|---|---|---|
| 2017 | 93 | 95 | First unified Negative List |
| 2018 | 48 | 45 | Banking, securities, insurance relaxed |
| 2019 | 40 | 37 | Oil & gas, telecom, infrastructure opened |
| 2020 | 33 | 30 | Foreign Investment Law took effect |
| 2021 | 31 | 27 | Manufacturing further opened |
| 2022 | 31 | 27 | Aviation, shipping relaxed |
| 2024 | ~29 | ~24 | Manufacturing fully opened; medical/biotech pilots |
| 2025-26 | ~27 | ~22 | Healthcare, telecom, education pilots expanded |
Investment Structures Based on Negative List Status
| Negative List Status | Investment Structure |
|---|---|
| Not on list (open) | WFOE (100% foreign ownership) |
| Restricted: equity cap | WFOE or JV with foreign equity within cap |
| Restricted: JV required | Joint Venture with Chinese partner |
| Restricted: GM must be Chinese | WFOE or JV with Chinese GM appointment |
| Prohibited | No foreign investment allowed |
Conclusion
China's Negative List has been progressively shortened, demonstrating the country's commitment to opening its markets to foreign investment. With manufacturing now fully open and pilot programs expanding in healthcare, telecommunications, and biotechnology, 2026 offers more opportunities than ever for foreign investors. Before investing, always check the latest Negative List, the Encouraged Catalog, and any FTZ-specific provisions that may apply to your industry.
To instantly check market access for your specific industry, use our Market Access Checker tool.