In September 2015, the government central leading team for the comprehensive market access reform adopted the opinion on the implementation of the market access negative list regime ("Opinion"). Following the adoption of the Opinion, the State Council officially released Guofa  No. 55 in October 2015 clarifying the general principle, the primary missions and the supportive measures for implementing the market access negative list regime. On March 2, 2016, National Development and Reform Commission (NDRC) and Ministry of Commerce (MOC) jointly released the first draft of Market Access Negative List (trial version) (referred to as "Draft Negative List"). The Draft Negative List specifies the prohibited access and limited access industries, fields, and business in China. The Draft Negative List is pilot-run in Tianjin, Shanghai, Fujian, and Guangdong effective from the end of 2015.
In this issue of China Tax and Business News Flash, we share the government's direction in the reform of the market access system in China, our observations on the Draft Negative List and its influences on investments and operations in China.