The opinions of the State Council on implementing the negative list system for market access

According to the requirements of the "Decision of the Central Committee of the Communist Party of China (CPC) on Some Major Issues Concerning Comprehensively Deepening the Reform" and the decisions and arrangements of the State Council, it hereby announced their opinions on implementing the negative list system for market access as follows October 2, 2015:

I. Significance

1. Definition of the negative list system for market access.

The negative list system for market access refers to a series of institutional arrangements where the State Council clarifies in a list the sectors, areas and businesses prohibited or restricted from the market within the territory of the People's Republic of China and local governments at all levels take corresponding management measures in accordance with the law. All kinds of market players may enter sectors, areas and businesses not on the negative list on an equal basis and according to the law.

2. Implementing the negative list system for market access is the important basis for the market to play a decisive role in the allocation of resources.

By implementing the negative list system for market access, we give market players more initiative. It helps to put autonomy of market players into practice and stimulate the market's vitality, form a market environment in which all kinds of market players have equal access to the factors of production according to the law and participate in competition on an open, fair and just footing, and establish a unified, open, competitive and orderly modern market system. It will provide more space for the market to play a decisive role in the allocation of resources.

3. Implementing the negative list system for market access is the intrinsic requirement for better playing the role of the government.

By implementing the negative list system for market access, we make clear the boundaries of government responsibilities. It helps to further deepen the reform of the system concerning matters subject to administrative review and approval, significantly reduce the range for government review and approval, innovate on methods of government supervision, promote investment and trade facilitation, and constantly improve administrative efficiency and effectiveness. It helps to urge the government to strengthen market regulation in line with the thought and approaches of the rule of law, make market regulation institutionalized, standardized and procedure-based, and fundamentally promote the transformation of government functions.

4. Implementing the negative list system for market access is a requisite measure to build a new system for an open economy.

Implementing the negative list system for market access and foreign investment is an effective way to promote reform through opening up and construct a higher-level market economy. It helps to speed up the establishment of a modern market system in line with the prevailing international rules and create a business environment based on the rule of law. By stimulating the orderly and free flow of international and domestic factors of production, highly efficient allocation of resources and in-depth market integration, it will constantly make our country more internationally competitive.