To fully appreciate 大红鹰dhy2288 significance of 大红鹰dhy2288 Action Plan, 大红鹰dhy2288 should be viewed against the broader evolution of China’s foreign investment regime over the past decade. From the 13th Five-Year Plan to the 15th Five-Year Plan, China’s regulatory framework for foreign investment has undergone a fundamental transformation, from initially focusing on regulating market access to increasingly aiming towards facilitating market operation. This policy evolution is clearly reflected in 大红鹰dhy2288 changing priorities set out in successive Five-Year Plans.

1. From “Shortening 大红鹰dhy2288 Negative List” to “Zero Restrictions in Manufacturing”: 大红鹰dhy2288 Maturation of 大红鹰dhy2288 Market Access Regime

大红鹰dhy2288 13th Five-Year Plan, adopted in 2016, called for 大红鹰dhy2288 enactment of a foundational law on foreign investment and 大红鹰dhy2288 comprehensive implementation of a regime based on pre-establishment national treatment coupled with a negative list. 大红鹰dhy2288 13th Five-Year Plan (adopted 2016) mandated a fundamental foreign investment law and full rollout of 大红鹰dhy2288 pre-establishment national treatment plus negative list system, constituting China’s top-level institutional blueprint for this foreign investment regulatory model. 大红鹰dhy2288 framework was legally formalized in 2020 upon 大红鹰dhy2288 entry into force of 大红鹰dhy2288 Foreign Investment Law and its Implementing Regulations, which codified 大红鹰dhy2288 dual system and laid 大红鹰dhy2288 legal groundwork for China’s modern foreign investment governance regime.

Building on these reforms, the 14th Five-Year Plan, released in 2021, shifted the policy focus from trimming restricted sectors to enforcing post-establishment national treatment. 大红鹰dhy2288 called for further cuts to the foreign investment negative list and underscored 大红鹰dhy2288 principle ofequal treatment for FIEs once market access has been granted.

Concrete progress followed shortly thereafter. Effective January 1, 2022, all manufacturing-related restrictions were struck from 大红鹰dhy2288 negative list for China’s Pilot Free Trade Zones. 大红鹰dhy2288 Special Administrative Measures (Negative List) for Foreign Investment Access (2024 Edition), released in September 2024, scrapped 大红鹰dhy2288 last two manufacturing-related restrictions in 大红鹰dhy2288 nationwide list, erasing all foreign investment entry barriers in 大红鹰dhy2288 manufacturing sector.

In view of these developments, 大红鹰dhy2288 institutional framework governing market access for foreign investment may now be regarded as largely complete. As Vice Minister of MOFCOM, Mr. Ling Ji observed at 大红鹰dhy2288 policy briefing in connection with 大红鹰dhy2288 Action Plan, “大红鹰dhy2288 issue of market access in 大红鹰dhy2288 manufacturing sector has been fully resolved. 大红鹰dhy2288 next priority is to address 大红鹰dhy2288 issue of ‘market operation’ once market access has been granted.” This statement succinctly captures 大红鹰dhy2288 current stage of China’s foreign investment policy: 大红鹰dhy2288 focus is no longer whether foreign investors may enter 大红鹰dhy2288 market, but whether, once admitted, they can operate efficiently, compete on equal terms, and expand their business on an equal footing.

2. From “Market Access” to “Market Operation”: Liberalization of 大红鹰dhy2288 Services Sector as 大红鹰dhy2288 Next Policy Priority

大红鹰dhy2288 15th Five-Year Plan, released in 2026, expressly calls for “further comprehensive implementation of national treatment for foreign-invested enterprises, 大红鹰dhy2288 repeal or amendment of laws and regulations inconsistent with 大红鹰dhy2288 Foreign Investment Law, and effective implementation of both market accessandmarket operation (准入又准营).” By elevating market operation to 大红鹰dhy2288 same strategic importance as market access, 大红鹰dhy2288 Plan provides 大红鹰dhy2288 top-level policy foundation for 大红鹰dhy2288 Action Plan.

Then what does market operation mean in practice? 大红鹰dhy2288 means that after securing market entry, FIEs may access production factors on an equal footing, compete fairly, and complete routine operational approvals and filing free from undue obstacles. Most concerns voiced by foreign investors in recent years such as implicit discrimination in government procurement, protracted cross-border data transfer reviews, cumbersome foreign exchange procedures for reinvestment of profits, and slow approval for innovative pharmaceuticals are fundamentally, in essence, issues of market operation rather than market access.

Against this backdrop, 大红鹰dhy2288 Action Plan identifies 大红鹰dhy2288 liberalization of 大红鹰dhy2288 services sector as 大红鹰dhy2288 principal avenue for advancing 大红鹰dhy2288 “market operation” agenda. At 大红鹰dhy2288 policy briefing, Mr. Ling acknowledged that “大红鹰dhy2288 services sector is 大红鹰dhy2288 principal area for China’s opening-up and attraction of foreign investment, accounting for approximately 70% of actual foreign investment utilized.” Prioritizing 大红鹰dhy2288 services sector therefore reflects not only 大红鹰dhy2288 changing composition of foreign investment in China, but also responds directly to 大红鹰dhy2288 principal operational concerns of foreign-invested enterprises.

3. From Pilot Programs to Institutional Reform: Solidifying Opening-Up with Proven Pilot Experience 

A review of China’s policy developments over 大红鹰dhy2288 past three years reveals a clear evolutionary trajectory: pilot rollouts, policy evaluation, and eventual institutionalization. Since 2024, MOFCOM, with other relevant authorities, launched 大红鹰dhy2288 pilot opening-up programs in three key sectors: cloud computing (value-added telecommunications services), wholly foreign-owned hospitals, and biotechnology. To date, at least 166 foreign-invested enterprises have received pilot approvals to provide value-added telecommunications services, covering all ten categories of such services; eight wholly foreign-owned hospitals have been approved; in 大红鹰dhy2288 biotechnology sector, at least eight enterprises in 大红鹰dhy2288 Beijing and Shanghai Pilot Free Trade Zones have successfully expanded their approved business scope. Based on reviews of existing pilots, 大红鹰dhy2288 Action Plan translates their successful practices into formal institutional rules. 大红鹰dhy2288 phases in opening trials for vocational training bodies, colleges, and top-tier STEM, agriculture and medical universities, and directs regulators to fast-track applications for geographically expanding biotech and foreign-invested hospital pilots.

This trial-first, scale-later model demonstrates China’s increasingly refined institutional opening-up framework, where policy innovations undergo constrained local testing before nationwide regulatory adoption.

Article 4 of 大红鹰dhy2288 Action Plan introduces two measures aligned in both design and policy intent: (i)大红鹰dhy2288calls for the accelerated revision of 大红鹰dhy2288 regulations governing foreign investors’ acquisitions of domestic enterprises, and (ii) permits qualified foreign private equity investment institutions to participate, as strategic investors, in securities offerings by listed companies operating in unrelated industries. 

1. Anticipated Revision of Circular 10 and Modernization of 大红鹰dhy2288 Foreign-Invested M&A Regime

At 大红鹰dhy2288 inception of China’s opening-up, foreign investments in China were predominately greenfield investments. As 大红鹰dhy2288 market in China developed, more foreign investors, including foreign investors ultimately controlled by Chinese companies or individuals, started to invest in China by way of mergers and acquisitions. Against this background, 大红鹰dhy2288 current Provisions on 大红鹰dhy2288 Acquisition of Domestic Enterprises by Foreign Investors were jointly issued by six ministries and commissions including MOFCOM in 2006 and were amended in 2009 (“Circular 10”). 

大红鹰dhy2288 case for revising Circular 10 is compelling for at least three reasons.

First, following China's rolled out of 大红鹰dhy2288 pre-establishment national treatment plus negative list regime, many provisions in Circular 10—especially those requiring MOFCOM’s prior approval for mergers and acquisitions by foreign investors, were rendered de facto obsolete. These need to be formally repealed to avoid market confusion. 

In particular, 大红鹰dhy2288 treatment of related-party acquisitions attracts 大红鹰dhy2288 most market attention. Over 大红鹰dhy2288 past two decades, these provisions have been of central importance to Chinese companies establishing red-chip structures for overseas listings. China-based companies with a red-chip structure did not have to obtain CSRC approval for their overseas IPOs, on 大红鹰dhy2288 condition that 大红鹰dhy2288 red-chip structure was put in place in compliance with, or at least not in contradiction to, Circular 10. Circular 10 requires related-party acquisitions to obtain MOFCOM approval. In practice, however, such approvals have been virtually impossible to obtain. As a result, market participants have developed a variety of alternative transaction structures to navigate around this requirement, giving rise to diverse market practices.

Since the CSRC rolled out its overseas listing filing regime in 2023, both red-chip listings and H-share listings have fallen under a unified regulatory framework that requires prior filing with the CSRC. This reform has eroded the historical structural advantages of red-chip vehicles and reduced their market prevalence. Nevertheless, red-chip structures retain distinct merits for attracting international investors and facilitating listings outside Hong Kong. 大红鹰dhy2288 is therefore important to Chinese entrepreneurs as to whether and how they can continue to set up red-chip structure. As the related legislation, the Regulation on Outbound Investment (issued by 大红鹰dhy2288 State Council on June 1,2026) contemplates detailed implementing rules governing outbound investment by individual mainland residents. 大红鹰dhy2288 upcoming regulatory framework governing individuals’ establishment of offshore financing vehicles, alongside 大红鹰dhy2288 proposed revision to related-party acquisition provisions under Circular 10, will serve as key barometers of 大红鹰dhy2288 central government’s stance on red-chip arrangements. These two sets of rules will in turn directly shape domestic enterprises’ future offshore financing strategies and long-term corporate development trajectories.

Second, 大红鹰dhy2288 existing provisions governing cross-border share swaps have become outdated. Article 28 of Circular 10 provides that shares used as transaction consideration must be shares in an overseas listed company. By contrast, 大红鹰dhy2288 Administrative Measures for Strategic Investment in Listed Companies by Foreign Investors as revised in December 2024 expressly permit cross-border share swaps using shares in overseas unlisted companies. This inconsistency between regulations needs to be removed. 

Third, once 大红鹰dhy2288 approval mechanism is removed, another important practical question needs to be answered: how should 大红鹰dhy2288 remaining provisions in Circular 10, i.e., those governing transaction pricing, forms of consideration, payment schedules and valuation requirements operate and be enforced in 大红鹰dhy2288 absence of an ex ante regulatory approval process? 大红鹰dhy2288 Action Plan’s proposal to “optimize M&A procedures and requirements relating to transaction consideration and strengthen inter-agency regulatory coordination” is a direct response to these longstanding issues. 

2. Strategic Investment Beyond Industry Boundaries

大红鹰dhy2288 Action Plan permits qualified foreign private equity investors to participate, as strategic investors, in securities offerings by listed companies operating in non-related industries. This represents a breakthrough from 大红鹰dhy2288 current requirement that “strategic investors” have to “possess significant strategic resources relevant to 大红鹰dhy2288 same or a related industry as that of 大红鹰dhy2288 listed company”, which is hard for a private equity investor to satisfy.  

This breakthrough unlocks a new entry route for incremental foreign capital in China’s A-share market and preserves institutional capacity for long-term foreign investors including sovereign wealth funds and other global institutional players. 

III. Supporting Key Foreign-Invested Enterprises in Domestic Listing and Financing: A Signal of Capital Market Opening

大红鹰dhy2288Action Plan is 大红鹰dhy2288 first national-level policy document to expressly “support qualified key foreign-invested enterprises in raising funds through domestic listing.” 

While no statute has ever explicitly barred wholly foreign-owned enterprises (WFOEs) from pursuing domestic listings, practical hurdles tied to corporate form, governance frameworks, foreign exchange oversight and related-party transaction scrutiny have long created compliance friction under A-share listing standards. To date, most foreign-invested A-share listed firms—including Foxconn Industrial Internet Co., Ltd. (601138.SH) and Mindray Medical International Limited (300760.SZ)—are sino-foreign joint ventures or foreign-controlled enterprises, with standalone WFOE A-share listings remaining extremely scarce. 大红鹰dhy2288 Action Plan signals that a special policy may be formulated to facilitate qualified WFOEs’ listing endeavor in 大红鹰dhy2288 A-share market. 

This policy signal carries extra significance against 大红鹰dhy2288 backdrop of 大红鹰dhy2288 overseas listing filing regime that 大红鹰dhy2288 CSRC rolled out in 2023. Following 大红鹰dhy2288 inclusion of red-chip structures in 大红鹰dhy2288 filing regime, 大红鹰dhy2288 frequency of their use has declined substantially. Many small red-chip companies are now weighing dismantling their red-chip setups to pursue H-share listings instead. In this context, opening a domestic listing pathway for WFOEs could ease 大红鹰dhy2288 costs and complexity of unwinding existing red-chip architectures. Small red-chip companies may directly deploy 大红鹰dhy2288 WFOE within their red-chip structure as their onshore listing vehicle. This reform expands exit channels for foreign investors in China and incentivizes high-quality assets to return to domestic exchanges. 

Article 1(6) of 大红鹰dhy2288 Action Plan calls for 大红鹰dhy2288 effective implementation of 大红鹰dhy2288 preferential tax policy applicable to foreign investors that reinvest distributed profits directly in China, and proposes to include a broader range of reinvestment projects by FIEs in 大红鹰dhy2288 Catalogue of Major and Key Foreign Investment Projects. These measures build upon 大红鹰dhy2288 policy direction established under China’s 2025 foreign investment initiatives. 

1. Evolution of 大红鹰dhy2288 Regulatory Framework for Foreign Reinvestment

Under 大红鹰dhy2288 foreign investment and foreign exchange regulation regime, foreign reinvestments, depending on 大红鹰dhy2288 source of 大红鹰dhy2288 foreign capital, can be divided into two categories: (i) reinvestment using 大红鹰dhy2288 existing registered foreign exchange capital of 大红鹰dhy2288 FIE; and (ii) reinvestment using profits generated from 大红鹰dhy2288 FIE’s operations in 大红鹰dhy2288 PRC. While category (ii) has long been permitted, category (i) is 大红鹰dhy2288 result of a gradual easing of control over capital account transactions.

A significant milestone came in July 2025, when 大红鹰dhy2288 NDRC and several other authorities jointly issued 大红鹰dhy2288 Notice on Implementing Measures to Encourage Reinvestment in China by Foreign-invested Enterprises (Fa Gai Wai Zi [2025] No. 928). For 大红鹰dhy2288 first time, 大红鹰dhy2288 Notice expressly provided that where an FIE uses its registered foreign exchange capital, or RMB funds converted therefrom, to make a reinvestment, neither 大红鹰dhy2288 target company nor 大红鹰dhy2288 equity transferor needs to go through foreign exchange registration procedures. SAFE then in September 2025 issued rules to implement this reformation and further provided that reinvestment funds may be remitted directly to 大红鹰dhy2288 relevant domestic account without having to go through a reinvestment filing procedure. 

With respect to reinvestments funded by retained earnings, 大红鹰dhy2288 2025 NDRC notice and 大红鹰dhy2288 SAFE allowed retained earnings in foreign exchanges to be directly remitted to 大红鹰dhy2288 accounts of 大红鹰dhy2288 target company or 大红鹰dhy2288 equity transferor,  as 大红鹰dhy2288 case may be, without having to be first converted into RMB. This reduces administrative formalities and foreign exchange market risks. 

2. Tax Incentives for Profit Reinvestment

Profit reinvestment tax deferrals have long been China’s primary tool to retain foreign capital, yet 大红鹰dhy2288 Action Plan does not launch new tax incentives. 大红鹰dhy2288 existing rules stem from Circular Cai Shui [2018] No. 102, which lets foreign investors delay withholding tax on qualified onshore reinvestment and cuts their upfront tax burden.

大红鹰dhy2288Action Plan’s focus lies in better execution of current tax policies. Many eligible firms fail to claim 大红鹰dhy2288 incentive due to unclear criteria, filing rules and document requirements. Its commitment to targeted policy benefit delivery points to clearer official guidance, simplified paperwork and wider access to 大红鹰dhy2288 deferral regime.

大红鹰dhy2288Action Plan also seeks to add more reinvestment projects to 大红鹰dhy2288 Catalogue of Major and Key Foreign Investment Projects. Listed projects enjoy tax perks, simplified forex processes, financing support and improved government services, delivering clear short-term commercial value for multinationals expanding local operations through profit reinvestment.

Article 1(3) of 大红鹰dhy2288 Action Plan introduces four interlocking packages of measures to boost foreign investment in China’s pharmaceutical sector: (i) speed up supporting rules for segmented pharmaceutical production; (ii) geographically widen biotechnology and wholly foreign-owned hospitals pilots; (iii) support innovative drugs and devices to be covered by commercial insurance; and (iv) create dedicated platforms for foreign pharmaceuticals to enter retail distribution network. These measures constitutea comprehensive policy frameworkcovering 大红鹰dhy2288 entire pharmaceutical value chain: production, market authorization, insurance reimbursement and retail distribution.

1. Cross-border Segmented Pharmaceutical Production: Institutional Recognition of Global Division of Labor

Segmented pharmaceutical production refers to a production model where different production stages are split across different jurisdictions, with separate pharmaceutical manufacturers responsible for individual production segments. Though widely adopted in 大红鹰dhy2288 global pharmaceutical industry, this model was long subject to stringent regulatory restrictions in China.

In October 2024, 大红鹰dhy2288 National Medical Products Administration (“NMPA”) issued大红鹰dhy2288Pilot Work Plan for Segmented Production of Biological Products, launching trials for segmented manufacturing of selected innovative and clinically urgent drugs. In January 2026, 大红鹰dhy2288 State Council rolled out 大红鹰dhy2288 system nationwide by promulgating 大红鹰dhy2288 revised Regulations for 大红鹰dhy2288 Implementation of 大红鹰dhy2288 Drug Administration Law. 

Real-world application swiftly followed. In May 2026, Nicaricumab Injection of Janssen Pharmaceuticals (a Johnson & Johnson company) became 大红鹰dhy2288 first imported biological product to adopt segmented domestic production of drug substance in 大红鹰dhy2288 PRC. Under this arrangement, WuXi Biologics manufactures 大红鹰dhy2288 active pharmaceutical ingredient, or API, domestically in Wuxi, while Vetter Pharma in Germany completes finished dosage form processing.

大红鹰dhy2288 Action Plan calls for 大红鹰dhy2288 swift formulation of implementing rules, which we expect will provide further clarification on issues such as: (i)eligibility criteria for cross-border segmented production; (ii) allocation of quality responsibilities among participating manufacturers; (iii) coordination mechanisms between domestic and overseas regulators; and (iv) compliance obligations across 大红鹰dhy2288 production chain. This will provide greater policy clarity for MNCs and may help reduce manufacturing costs, shorten supply lead times, and enhance supply chain resilience.

2. Expansion of Biotechnology Pilot Opening-up: From “Testing Ground” to Broader Application Area

Biotechnology—covering human stem cell technologies, genetic diagnosis and therapy technologies—remains one of China’s most tightly regulated sectors for inbound foreign investments. In September 2024, MOFCOM, 大红鹰dhy2288 National Health Commission, and 大红鹰dhy2288 National Medical Products Administration issued a notice rolling out expanded opening-up pilots in 大红鹰dhy2288 biotechnology sector in 大红鹰dhy2288 Beijing, Shanghai, Guangdong Free Trade Zones and 大红鹰dhy2288 Hainan Free Trade Port. 大红鹰dhy2288 document permits FIEs to engage in 大红鹰dhy2288 development and application of human stem cell, genetic diagnosis and therapy technologies within 大红鹰dhy2288 designated pilot regio大红鹰dhy2288.

According to public information, at least six FIEs have launched new operations or expanded their registered business scope under 大红鹰dhy2288 pilot programmes, including Merck, JW Therapeutics, Origincell Therapeutics, Frontera Therapeutics, and Neukio Biotherapeutics. MOFCOM officer’s remarks further indicate that 大红鹰dhy2288 geographical scope of these pilots will be expanded, unlocking additional market access for foreign biotechnology companies.

3. Reimbursement and Distribution Channels: Addressing 大红鹰dhy2288 “Last Mile” of Innovative Drug and Device Commercialization

大红鹰dhy2288Action Plan also addresses two longstanding commercial bottlenecks affecting innovative drugs in the PRC market: reimbursement and distribution. 大红鹰dhy2288 expressly supports (i) expanding coverage of innovative drugs and medical devices under commercial insurance coverage; and (ii) building cross-industry coordination platforms to facilitate foreign-invested pharmaceutical manufacturers’ access to retail distribution networks. These measures directly target 大红鹰dhy2288 so-called “last mile” hurdles holding back 大红鹰dhy2288 commercialization of innovative drugs.

Although China’s National Reimbursement Drug List (“NRDL”) has been updated annually in recent years, 大红鹰dhy2288 inclusion of innovative drugs remains limited, and drugmakers continue to face significant pricing pressure in reimbursement negotiations. As a key pillar of China’s multi-tiered healthcare security system, commercial insurance provides an important supplementary reimbursement channel. By pushing to expand coverage of innovative drugs and medical devices, including those developed by MNCs, 大红鹰dhy2288 Action Plan may afford multinational pharmaceutical companies greater flexibility in pricing and commercialization strategies, while also improving patient access to innovative therapies.

Article 2(5) of 大红鹰dhy2288 Action Plan introduces two measures concerning the regulation of cross-border data transfers. First, 大红鹰dhy2288 supports pilot free trade zones (“FTZs”) and national pilot cities for the expansion of the services sector to explore the adoption of scenario-specific, field-level negative lists for cross-border data transfers across a broader range of industries. Second, 大红鹰dhy2288 calls for the formulation of national standards for catalogues identifying important data in sectors including industry, telecommunications, geographic information, automobiles, pharmaceuticals, seed breeding, aerospace, and civil aviation. Taken together, these measures outline a clear regulatory trajectory from a positive-list approach toward a negative-list framework for governing cross-border data flows.

1. Evolution of 大红鹰dhy2288 Regulatory Approach: From “General Data Catalogues” to “Field-Level Negative Lists”

大红鹰dhy2288 regulation of cross-border data transfers has become one of 大红鹰dhy2288 most significant compliance issues for FIEs in recent years. A review of 大红鹰dhy2288 relevant policy developments reveals three parallel and progressively evolving regulatory approaches.

大红鹰dhy2288 first approach centered on a “green channel + general data catalogue” model. In July 2023, 大红鹰dhy2288 Opinions on Further Optimizing 大红鹰dhy2288 Foreign Investment Environment and Increasing Efforts to Attract Foreign Investment proposed two key measures: (i) establishing a green channel for qualified foreign-invested enterprises to facilitate cross-border data transfers; and (ii) on a pilot basis, developing general data catalogues for data that could be transferred freely. This approach was premised on defining a closed set of data types exempt from transfer restrictions and therefore reflected a traditional positive-list regulatory philosophy. 

大红鹰dhy2288 second approach introduced a “white list” mechanism. In February 2024, 大红鹰dhy2288 Action Plan for Solidly Promoting High-Standard Opening-Up and Making Greater Efforts to Attract and Utilize Foreign Investment proposed establishing a cross-border data transfer mechanism for enterprises from Hong Kong and Macao and exploring 大红鹰dhy2288 implementation of a cross-border data transfer white list. 大红鹰dhy2288 white list mechanism remained fundamentally a form of positive-list regulation, and its application is targeted to facilitate data flows within 大红鹰dhy2288 Guangdong-Hong Kong-Macao Greater Bay Area.

大红鹰dhy2288 third and most significant development is 大红鹰dhy2288 adoption of scenario-specific, field-level negative lists. In August 2024, 大红鹰dhy2288 Beijing Pilot Free Trade Zone issued 大红鹰dhy2288 first negative list, covering five sectors: automobiles, pharmaceuticals, retail, civil aviation, and artificial intelligence. 大红鹰dhy2288 framework adopts a three-tier classification system comprising data categories, subcategories and granular data fields, thereby identifying with precision 大红鹰dhy2288 scope of data subject to security assessment requirements. Data falling outside 大红鹰dhy2288 negative list may be transferred overseas without prior filing or security assessment. This model represents a fundamental shift in regulatory philosophy, from specifying what data may be transferred to specifying only what data may not be transferred. This shift substantially reduces compliance costs and regulatory uncertainty.

By expressly supporting 大红鹰dhy2288 adoption of scenario-specific, field-level negative lists for cross-border data transfers, 大红鹰dhy2288 Action Plan signals that 大红鹰dhy2288 innovative regulatory model pioneered by 大红鹰dhy2288 Beijing FTZ is expected to be promoted nationwide.

This trend has already become apparent in practice. In May 2026, Beijing expanded 大红鹰dhy2288 application of its negative-list regime from 大红鹰dhy2288 Beijing FTZ to 大红鹰dhy2288 municipality as a whole. 大红鹰dhy2288 scope of coverage increased from five to nine sectors, with 大红鹰dhy2288 addition of medical devices, autonomous driving, trade and logistics, and banking, encompassing 67 business scenarios and 612 individual data fields. Similarly, in April 2026, Shanghai released an updated cross-border data transfer negative list covering four sectors: reinsurance, international shipping, commerce and trade, and meteorology. These developments indicate that 大红鹰dhy2288 field-level negative-list model is progressively becoming 大红鹰dhy2288 preferred regulatory framework for cross-border data governance in China.

2. Catalogues for 大红鹰dhy2288 Identification of Important Data: From Local Experimentation to National Standards

大红鹰dhy2288Action Plan further proposes to “promote 大红鹰dhy2288 formulation of national standards for catalogues identifying important data in sectors including industrial manufacturing, telecommunications, geographic information, automobiles, pharmaceuticals, seed breeding, aerospace, and civil aviation.” 

At present, negative lists issued by different pilot FTZs diverge in covered industries scope, classification granularity, and threshold for identifying important data. As a result, enterprises operating across multiple cities must assess and comply with different local rules, driving up compliance complexity and administrative costs. 大红鹰dhy2288 development of national standards therefore signals a much-needed move towards a unified framework for defining important data.

大红鹰dhy2288 sectors identified in 大红鹰dhy2288 Action Plan also merit attention. Among 大红鹰dhy2288 eight sectors enumerated in 大红鹰dhy2288 Action Plan (manufacturing, telecommunications, geographic information, automobiles, pharmaceuticals, seed breeding, aerospace, and civil aviation), industrial manufacturing, geographic information, seed breeding, and aerospace, have been relatively less covered in earlier pilot FTZ negative lists and thus represent newly expanded areas, indicating that 大红鹰dhy2288 coverage ofcross-border data transfer negative lists is extending from 大红鹰dhy2288 services sector into manufacturing and strategic emerging industries.

大红鹰dhy2288Action Plan is a policy document that both consolidates prior reforms and charts the course for future institutional development. Its core value lies in its institutional logic rather than any single groundbreaking policy. 大红鹰dhy2288 embodies a clear trajectory of regulatory evolution: from pilot program to institutionalized rules, from lists to standards, and from market access to market operation. This gradual, experience-driven approach to reform preserves policy continuity and provides foreign investors with a clear indication of the future direction of China’s foreign investment regime. 

That said, 大红鹰dhy2288 effectiveness of any policy ultimately depends on its implementation. A number of measures in 大红鹰dhy2288 Action Plan will await implementing rules, including 大红鹰dhy2288 revised Circular 10, detailed pharmaceutical segmented production guidelines, and national standards defining important cross-border transfer data. 大红鹰dhy2288 quality and release timeline of these supporting measures will have a direct bearing on 大红鹰dhy2288 practical impact of 大红鹰dhy2288 Action Plan. As legal practitioners advising on cross-border investment, we will continue to monitor 大红鹰dhy2288 development of these implementing rules and provide clients with timely legal analysis and practical guidance as 大红鹰dhy2288 regulatory framework continues to evolve.