With the recent approval of a guideline for adopting a negative list approach to regulate market access by the Central Leading Group for Comprehensively Deepening Reforms, China will launch a negative list approach in regard to market entrance criteria in 2018.

Any alteration of the negative list filed by a local government can only be implemented after State Council approval.

The guideline does not only formulate a timetable for implementing the negative list nationwide, but also regulates the validity of any adjustments made by local governments once the system is in operation.

Compared to the administrative approval system, the negative list system stipulates what actions are not allowed and help all levels of government well understand their roles so as not to interfere with and hinder the development of enterprises.

With the stipulation of the negative list, the responsibilities and powers of the government and the enterprises will be greatly clarified. Thus, governments and enterprises clearly understand that they should respectively be responsible for any violation of the provisions of the system.

The implementation of this system will give greater powers to the market and governments and enterprises will be more disciplined and regulated. What is more important, it gives full play to the decisive role of the market in the distribution of resources.

With the establishment of the negative list system, China will further open its market and push forward economic and trade cooperation with the other countries.

It also encourages investors to have their say in entering and leaving the market as long as they comply with the provisions and regulations of the system.

The building-up of the negative list system can better explain the contentious capital withdrawals made by Lee Ka-shing, the richest businessman in Asia. The system does not restrict Lee's right to pull out investments; nor does it deny the possibility of Lee being able to reinvest in the mainland. He can make the choice based on his own volition as long as he follows the rules set out under the negative list system.

Being less restrictive than previous rules, the system will ensure the merit of fairness, which is important to guarantee the running of market-oriented economy.

The author is a commentator of China.com.cn.

The article was translated by Wu Jin. Its original unabridged version was published in Chinese.

Opinion articles reflect the views of their authors, not necessarily those of China.org.cn.

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