Guides

The WFOE Negative List of Restricted Industries

· China WFOE Editorial · Updated

How China’s foreign investment negative list affects WFOEs: restricted and forbidden sectors, periodic updates, national treatment outside the list, and other regulatory requirements.

China publishes Special Administrative Measures (Negative List) for Foreign Investment Access (外商投资准入特别管理措施／负面清单): industries and activities where foreign investment is restricted or prohibited. A WFOE’s business scope must be checked against the current list before filing.

The list is updated by competent authorities when they issue a new edition — it is not guaranteed to be revised every calendar year. The current national edition is the 2024 Negative List (NDRC/MOFCOM Order No. 23; effective 1 November 2024), which replaced the 2021 edition. Separate measures may also apply in pilot free-trade zones or other special regions.

Outside the Foreign Investment Negative List, foreign and domestic investors are generally managed under national treatment. That does not mean an activity is free of other requirements: investors may still face the Market Access Negative List, sector licences, qualifications, permits, environmental approvals, customs/import-export registrations, or business-scope drafting limits. Always confirm against the current NDRC/MOFCOM list and the competent industry regulator for your sector and city.

Over recent editions China has relaxed many manufacturing restrictions — confirm the live text rather than relying on summaries.

Sensitive and strategic sectors remain more likely to be restricted or prohibited, including areas such as:

  • Protected agriculture and seed production.
  • Rare earths and certain strategic minerals or mining.
  • Energy projects involving natural resources or critical infrastructure.
  • Telecommunications or publishing/media in sensitive categories.

Before locking your business scope, review our China WFOE registration process and capital requirements overview.

Official sources

General information only — not legal, tax, or investment advice. Rules and local practice can change; confirm current requirements for your city, industry, and structure.