A worker rushes to fill orders at a factory in an industrial park in Nanchong, Southwest China's Sichuan Province on January 16, 2024. The province has built financing platforms and promoted scientific and technological innovations for private firms, in a bid to optimize the business environment of the private economy and boost the high-quality development of the local economy. Photo: VCG

China on Thursday further shortened its market access negative list, further relaxing market access restrictions, optimizing market access management, and marking new important achievements in the construction of market access system.

The 2025 negative list for market access cuts the number of restricted items from 117 in the 2022 edition to 106 now, according to a notice issued by the National Development and Reform Commission (NDRC), the top economic planner, on Thursday.

The new list significantly lowers entry barriers. For instance, the seal engraving business has shifted from a licensing to a filing system, while sales of security products for computer information systems now adhere to a testing and certification program based on mandatory national standards.

Additionally, certain restrictions in sectors including new telecom services, TV drama production, pharmaceutical distribution and forest seed imports have been relaxed, according to the NDRC. 

Meanwhile, local regulations on transport logistics have been scrapped, which will help remove regional market barriers. Also, local management of shipbuilding, liquor trading and commodity exchanges has been canceled, replaced by national market access guidelines.

Emerging sectors such as unmanned aerial vehicle operations and the production, wholesale, and retail of new tobacco products like e-cigarettes have been incorporated into the negative list.

The shorter list reflects China's commitment to streamlining and liberalizing market access, creating a more open and equitable playing field for all businesses. This also signals the government's firm resolve to optimize the business environment, helping boost investor confidence at home and abroad and drive steady economic growth, Wang Peng, an associate research fellow at the Beijing Academy of Social Sciences, told the Global Times on Thursday.

According to Wang, the adjustments are tailored to adapt to new economic and social developments. Removing redundant measures eases access, cuts costs and stimulates market vitality, while new measures strengthen regulation, ensure public safety and assist emerging industries to develop, he said.

According to the NDRC, both domestic and foreign business entities engaged in investment and operational activities within China should uniformly adhere to all provisions of the market access list, effectively implementing the principles of national treatment.

Foreign investors are also required to comply with the "Special Administrative Measures (Negative List) for Foreign Investment Access," while overseas services providers offering cross-border services to China should follow the "Special Administrative Measures for Cross-border Trade in Services (Negative List)," according to the NDRC.

By clarifying the market access rules, foreign investors will have a more stable, transparent and predictable investment environment, making China a more attractive investment destination, Wang said.

In the first quarter, 12,603 new foreign-invested enterprises were established, up 4.3 percent year-on-year. Notably, foreign direct investment in March alone grew by 13.2 percent year-on-year, according to official data.

China launched its first market access negative list in 2018, becoming the world's first major economy to adopt this model. 

The system emphasizes national uniformity, operating under a "single national list" to standardize market access rules. Regardless of ownership structure - whether they are state-owned enterprises, private companies, large corporations, or small and medium-sized enterprises - all business entities have equal legal rights to enter those sectors, the NDRC said.

With the deepening of market access systemic reforms, the continuous reduction of items on the negative list and the continuous release of policy dividends, private enterprises will have a broader space for development, according to the NDRC.

The adjustments will further empower private enterprises as well as state-owned and foreign-funded counterparts, Tian Yun, a Beijing-based economist, told the Global Times on Thursday. "As engines of China's economic growth, private firms will tap into abundant opportunities in many emerging sectors."

According to the State Administration for Market Regulation, as of the end of January, there were 56.707 million private enterprises registered nationwide. Among high-tech enterprises nationwide, 420,000 were private, accounting for more than 92 percent.