Free Trade Zone Releases List of Restricted Sectors
The Shanghai free trade zone officially opened last Sunday and have now published a list of sectors in which foreign investment will be restricted or banned in the zone. Which is in contrast to its departure from the usual practice no other permission is required in dealing or investing in other sectors found in the free trade zone.
A negative list was published on the zones official website and will be shorten as the zone progresses and gains steam and the risks will be better understood. The list compromises of hundreds of line item restrictions in the industrial categories from hydropower, telecommunications and culture. Foreign firms are also banned from investing in media organizations that published print materials such as book, magazines, newspaper and electronic publications.
Foreign firms also restricted from opening internet cafes, gambling businesses and pornographic venues as well. But first time foreigners are permitted to do investments in projects such as exploring nontraditional national gas resources but only with joint ventures with Chinese partners.