At the end of June just past, the National Development and Reform Commission and the Ministry of Commerce issued two “negative lists” in quick succession over three consecutive days—on June 28, they released the “Special Management Measures for Foreign Investment Access (Negative List) (2018 Edition)” (hereinafter referred to as the 2018 Negative List), and on June 30, they released the “Special Management Measures for Foreign Investment Access in Pilot Free Trade Zones (Negative List) (2018 Edition)” (hereinafter referred to as the 2018 Free Trade Zone Negative List). Notably, both “negative lists” contain substantial provisions relevant to the mining industry.

The 2018 Negative List introduced a series of significant opening-up measures. One of these measures is the relaxation of market access in the agriculture and energy resources sectors. In the energy sector, foreign investment restrictions on the extraction of special and scarce coal types have been lifted. In the resources sector, foreign investment restrictions on graphite mining, rare-earth smelting and separation, and tungsten smelting have been removed. The mining industry entries in the 2018 Negative List include: exploration and development of oil and natural gas (excluding coalbed methane, oil shale, oil sands, and shale gas) are limited to joint ventures and cooperative enterprises; investment in the exploration and mining of tungsten, molybdenum, tin, antimony, and fluorite is prohibited; investment in the exploration, mining, and beneficiation of rare earths is prohibited; and investment in the exploration, mining, and beneficiation of radioactive minerals is also prohibited.

The 2018 version of the Negative List for Free Trade Pilot Zones, building on the nationwide negative list’s opening-up measures, pilots the removal or relaxation of foreign investment access restrictions in more sectors. In the mining sector, the restriction that petroleum and natural gas exploration and development be limited to joint ventures and cooperative enterprises has been lifted, and the prohibition on investing in the smelting, processing of radioactive minerals, and nuclear fuel production has also been removed. The mining-related entries in the 2018 version of the Negative List for Free Trade Pilot Zones include: a prohibition on investing in the exploration and mining of tungsten, molybdenum, tin, antimony, and fluorite; a prohibition on investing in the exploration, mining, and beneficiation of rare earth minerals; and a prohibition on investing in the exploration, mining, and beneficiation of radioactive minerals.

A relevant official from the National Development and Reform Commission stated that in recent years, China has continuously accelerated its pace of opening up, reducing restrictions on foreign investment access by nearly two-thirds and further widening its doors to foreign investors. Major reforms have been carried out on the approval system for foreign investment, introducing a new negative-list management model. In sectors not listed on the negative list, businesses are generally subject to filing-based administration. A series of proactive measures have been introduced to attract foreign investment, creating a more favorable investment environment. According to the UN Conference on Trade and Development’s World Investment Report, China continues to rank among the top two globally as the most attractive investment destinations and is also the world’s second-largest recipient of foreign investment.

The aforementioned official stated that China’s economy has now shifted from a stage of high-speed growth to a stage of high-quality development, and the international environment is undergoing profound changes, particularly with the rise of protectionism. Faced with this new situation, new tasks, and new requirements, we need to advance opening-up with greater intensity—using openness to drive reform, promote development, and foster innovation, thereby deepening the process of economic globalization. The 19th National Congress of the Communist Party of China called for fostering a new pattern of comprehensive opening-up, implementing high-level policies for trade and investment liberalization and facilitation, and fully adopting a pre-establishment national treatment plus negative list management system. General Secretary Xi Jinping pointed out at the Boao Forum for Asia that China’s economic development over the past 40 years has been achieved under conditions of opening-up, and in the future, China’s pursuit of high-quality economic development must also take place under even more open conditions. China will launch major initiatives to further open its doors to the world, significantly easing market access, and complete the revision of the negative list in the first half of this year. To implement the spirit of General Secretary Xi Jinping’s important speech at the Boao Forum and the decisions and deployments of the Party Central Committee and the State Council, the National Development and Reform Commission and the Ministry of Commerce have released the 2018 edition of the Negative List, further promoting a new round of opening-up.

According to reports, the revision of the negative list is guided by the overarching principle of further intensifying China’s opening-up to the outside world. Not only will the list be shortened in length, but more importantly, it will promote opening-up in key areas and introduce landmark initiatives. The 2018 version of the negative list has been significantly streamlined, retaining 48 special administrative measures—a reduction of 15 from the 63 measures in the 2017 version. With fewer entries on the list, the scope of approval for foreign investment will accordingly be further narrowed.

China’s economic development is a process of proactively integrating into economic globalization and continuously expanding its opening-up. As the industrial, policy, and legal environments become increasingly完善, China has now laid a solid foundation for a higher level of openness. Through new opening-up measures, China will further deepen investment cooperation with other countries and regions, promote broader exchanges in capital, technology, management, and talent, and thus achieve mutually beneficial and win-win outcomes on an even larger scale. By proactively expanding its opening-up in step with the trends of our times, China not only benefits itself but also contributes to the global community. We hope to work together with all countries around the world to create an even more favorable environment for advancing economic globalization.

The “Special Management Measures for Foreign Investment Access (Negative List) (2018 Edition)” shall take effect as of July 28, 2018. The Special Management Measures for Foreign Investment Access (Foreign Investment Negative List) contained in the “Guidance Catalogue of Industries for Foreign Investment (Revised 2017)” shall be repealed concurrently, while the Catalogue of Industries Encouraging Foreign Investment shall remain in force. The “Special Management Measures for Foreign Investment Access (Negative List) (2018 Edition) for Pilot Free Trade Zones” shall take effect as of July 30, 2018, and shall apply to all Pilot Free Trade Zones. The “Special Management Measures for Foreign Investment Access (Negative List) (2017 Edition) for Pilot Free Trade Zones” shall be repealed concurrently. □