Shanghai cuts negative list to woo foreign investment
Overseas firms will gain access to more sectors but free-trade zone's limited geographic size poses obstacle in sparking investment spree
Shanghai has widened access to sectors such as oil refining and tea processing for foreign investors registered in its free-trade zone as the city steps up efforts to woo overseas capital.
But the incentives might not be enough to spark an investment spree due to the limited geographic size of the zone.
The municipal government unveiled yesterday an upgraded version of the zone's "negative list" - sectors off-limits to foreign investors - touting it as a move to reinforce the development of the zone and facilitate cross-border investment.
The number of items on the list was cut from 190 to 139.
The attempts to further open the sectors are significant for … overall reforms
Foreign companies based in the 28.78 sqkm zone, the first of its kind on the mainland, will now be given access to a range of significant sectors including cotton processing, salt distribution and motorcycle manufacturing.
Shanghai's government took seven months to compile the new list, following sharp criticism from foreign businesses of the first version of the negative list, published in September, which they said was too "lengthy".