"Negative list management mode" refers to which economic fields are closed as stipulated by the government, and other industries, fields and economic activities are allowed except for the restricted fields on the list. Any management measures that are inconsistent with the national treatment and MFN treatment of foreign capital, or in terms of performance requirements and senior management requirements, are listed in the form of lists.

The advantage of this model is that foreign-funded enterprises can conduct self-examination against this list, and rectify the parts that do not meet the requirements in advance to improve the efficiency of foreign investment. However, in China, the government's approval system is still implemented for foreign investment, which makes foreign-funded enterprises uncomfortable, and they often fall into wrangling during the approval process, which reduces the efficiency of foreign investment.

Extended data

The so-called negative list management model is equivalent to the "blacklist" in the investment field, which lists the fields and industries that enterprises cannot invest in. Academically speaking, all management measures that are inconsistent with national treatment and MFN treatment, or management restrictions on performance requirements and senior management requirements, are listed in the form of lists.

Corresponding to the negative list is the positive list, that is, it lists the areas that enterprises can invest in.

In the General Agreement on Trade in Services (GATS), the positive list is used to determine the areas covered, while the negative list is used to describe the market access and national treatment restrictions on these open areas lists. This practice is also adopted by many countries at present, so as to effectively use positive and negative lists to protect some sensitive industries while opening up the market.

Reference: Baidu Encyclopedia-Negative List Management Mode