ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Economy

China to abolish foreign ownership caps in finance in 2021

Beijing allows majority stakes in insurance and securities effective July

China's markets are opening up further to foreign ownership in key fields like finance and autos, but technology remains closed off amid tensions with the U.S.   © Reuters

BEIJING -- China released its latest list of areas off limits to foreign investment on Thursday, cutting the number of restrictions to 48 from 63 as it opens more markets, most notably in finance.

The new list will take effect throughout the country on July 28, allowing majority foreign ownership in securities, insurance and commodity futures businesses. All restrictions on foreign investment in these areas will be removed in 2021, according to the document.

Previous "negative lists," released each year, applied only to certain areas like Shanghai, while the rest of the country had tighter regulations. 

This marks the first written confirmation of an easing of capital controls announced in April by People's Bank of China Gov. Yi Gang. The government will also end a rule capping foreign investment in Chinese banks at 25%.

In the automotive industry, China will lift investment restrictions on commercial vehicles in 2020 and on passenger cars in 2022, as announced in April. All ownership limits on gasoline stations will also be removed.

Farmers will also be free to breed new crop varieties, excluding wheat and corn, and produce seeds.

Foreign investment in internet services remains largely banned, however, except for certain areas like maps. These restrictions have drawn criticism from Western nations and may become a sticking point in trade talks between Washington and Beijing.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends April 19th

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media