China Opens More to Foreign Investment, with Some Twists

On January 1, 2022, China's two updated negative lists for foreign investment came into effect. On paper, the shortened lists, with fewer sectors excluded from foreign investment, mean foreign investors are allowed to invest in more areas than before, with the auto and telecommunications manufacturing sectors being of particular note. However, some restrictions on foreign investment remain in place, and such restrictions will apply to foreign investment made through publicly traded shares.