Ministry Of Commerce: Foreign Investment in Rare Earth Mining Is Prohibited in The Pilot Free Trade Zone

The Special Administrative Measures for foreign investment access in the pilot free trade zone (negative list) (2021 version) has been deliberated and adopted at the 18th executive meeting of the national development and Reform Commission on September 18, 2021 and reviewed and signed by the Ministry of Commerce, and shall enter into force as of January 1, 2022.

Where a domestic enterprise engaged in the business prohibited by the negative list of the pilot free trade zone issues shares abroad and is listed for trading, it shall be examined and approved by the relevant competent authorities of the state. Foreign investors shall not participate in the operation and management of the enterprise, and its shareholding proportion shall be implemented with reference to the relevant provisions on the administration of domestic securities investment by foreign investors.

It is prohibited to invest in the exploration, mining and beneficiation of rare earth, radioactive minerals and tungsten. It is prohibited to invest in the wholesale and retail of tobacco leaves, cigarettes, redried tobacco leaves and other tobacco products.

The proportion of foreign shares in value-added telecommunications services shall not exceed 50%. The construction and operation of nuclear power plants must be controlled by the Chinese side.