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China sets timetable for nationwide 'negative list' approach

(Xinhua) Updated: 2015-10-20 09:17

BEIJING - China will pilot a "negative list" approach, which identifies sectors and businesses that are off-limits or restricted for investment, in some regions from Dec 1, 2015 to Dec 31, 2017, authorities said on Monday.

The aim is to explore a system that could be replicated nationwide for application in 2018 as part of efforts to streamline government administration and give more freedom to the market, according to a published guideline.

The "negative list" approach is a common practice adopted in many countries to manage foreign investment. China first piloted the rules in the Shanghai Free Trade Zone in 2013.

By extending the approach to cover domestic businesses, China looks to unleash more vitality in the private industry as the economy slows.

Wang Yukai, professor with the Chinese Academy of Governance, said the move will help reduce the threshold for investment and business start-ups to bring out the potential of various market entities.

Data on Monday showed China's economy expanded 6.9 percent in the third quarter, the first time the quarterly growth rate has dropped under 7 percent since the second quarter of 2009.

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