The Negative List for Market Access (2025 Edition) was officially released on April 24, the fourth revision since the first edition was introduced in 2018. The new edition reduced the number of items from 117 in 2022 to 106, according to the National Development and Reform Commission (NDRC), China’s top economic planner. The negative list identifies sectors either prohibited or subject to government approval for investment by both domestic and foreign entities.

Market access is the starting point for all businesses to conduct operations and engage in competition. The most fundamental requirement of the negative list management is “permission not required unless prohibited.” This means that for sectors not included in the negative list, all business entities – whether state-owned or private, domestic or foreign-funded, large or small – can enter the market equally in accordance with the law.

China’s “shorter and shorter” negative list signifies the relaxation of a large number of industry access restrictions, mirroring the intensity of China’s deepening market-oriented reforms. This holds special meaning for countless business entities, especially private ones.

An open market promises more opportunities

Private enterprises do not fear market competition; what they fear is the lack of opportunities for fair competition and discriminatory treatment. The “glass door” phenomenon – where market space is visible yet inaccessible – undermines their enthusiasm for investment and development. Each reduction of the negative list signifies greater openness in a sector, enabling more social forces to enter industries once considered “high-threshold.”

As is known, nuclear power is a strategic national sector characterized by substantial capital investments, long-cycle and stable returns, and stringent safety requirements. Historically, nuclear power projects were centrally controlled by state-owned enterprises with local government equity participation. Previously, China piloted private capital participation in nuclear power with a two percent stake held by private investors. In August last year, all five nuclear power projects approved by the State Council invited private capital, with private enterprises’ share rising to 10 percent for the first time. The number of participating private enterprises reached as many as 10.

Shandong Weiqiao Pioneering Group is one of the 10 private enterprises participating in the investment of the first phase of the Zhaoyuan nuclear power project. Huang Pingyi, deputy general manager of the group, said that the group’s aluminum industry sector is a major electricity consumer. Under the “dual-carbon” goals, they had explored the feasibility of nuclear power substitution with state-owned power enterprises, but were previously constrained by policies, technical barriers, and other factors, making effective implementation impossible. The company had long anticipated the opportunity to invest in nuclear power projects. The introduction of new nuclear power policies has finally open up fresh development opportunities for the company.

“Although nuclear power projects require substantial investment, with continuous technological iteration and improvements in operational management, the advantages of nuclear power – efficient, stable, and clean – will be further amplified. Against the backdrop of the ‘dual-carbon’ goals, nuclear power projects demonstrate strong profitability in later stages and offer stable long-term returns. We have confidence in the sustained development of the sector,” said Huang.

The supportive policy is crucial for deepening economic reforms, Huang noted. From an industry perspective, it diversifies nuclear development capital, optimizes its capital structure, and facilitates its healthy development. For private enterprises themselves, it reflects the state’s trust, support, and dedication to creating a better development environment. This policy is expected to stimulate private investment, boost the growth of the private economy, and enhance the competitiveness of private enterprises.

Continuous innovation is the key

Before Hainan established the first commercial space launch site in the country, it was almost impossible for private enterprises to secure rocket launch facilities. As China’s first low-latitude coastal commercial aerospace hub, Wenchang International Aerospace City carries the strategic mission of addressing the industrialization challenges of China’s commercial space sector and cultivating global competitiveness in aerospace technology. Just five years ago, the site where the aerospace city now stands was nothing but a coconut grove.

In April 2021, the NDRC and the Ministry of Commerce jointly issued the special measures for relaxing?market?access?in?the?Hainan?Free?Trade Port, which proposed optimizing the market access environment for the commercial space sector in Hainan. In the years that followed, Wenchang International Aerospace City achieved groundbreaking innovations. Today, with the site’s infrastructure in place, the commercial launch center has gained operational launch capability, where aerospace enterprises are competing to set up branches, and a robust commercial aerospace industry ecosystem is gradually forming.

As of this year, “We are about to complete an investment of around RMB 1 billion in Wenchang,” said Li Baohai, vice president of Hainan iSpace Launch Technology Co., Ltd. As the first commercial aerospace enterprise introduced to Wenchang International Aerospace City, the company has launched the construction of its assembly-retesting-reuse complex, maritime recovery platform, power systems testing base…across the entire industrial chain.

“These projects will lay a solid foundation for the SQX-3 carrier rocket to achieve its maiden flight goal of ‘orbital insertion plus maritime recovery’ in Hainan, bridging a key gap in reusable recovery capabilities for China’s commercial space sector,” said Li.

By 2024, Wenchang International Aerospace City generated over RMB 20 billion in operating revenue, with total registrations exceeding 3,250. Xu Xikai, deputy director of the Development Department at Hainan International Commercial Space Launch Co., Ltd., revealed that the next two to three years are expected to see explosive growth in commercial rocket launch demand. Only after the establishment of the Wenchang commercial launch center will this surge be met. “High-frequency launches are imminent at Hainan’s commercial spaceport,” he added.

Transforming China’s mega-market potential into tangible productive capacity has long posed challenges for technological innovation and industrial advancement. According to Guo Liyan, deputy director of the Institute of Economics at the Academy of Macroeconomic Research, optimizing market access policies to accelerate the formation of?new quality productive forces?is precisely what is needed. This approach unlocks maximum flexibility for technology commercialization, expedites R&D breakthroughs, and attracts patent capital.

Notably, multiple private enterprises underscored that relaxed market access in the commercial space sector has created significant new opportunities for them.

Modern governance system

As the technological revolution and industrial transformation became more entrenched, new business forms and emerging fields have proliferated. Traditional market access rules, regulatory approaches, and existing policy frameworks must also adapt to these new dynamics.

At night, the exotic charm of Gao-zhuang Xishuangjing Scenic Area permeates the air. Everywhere one looks, Dai-style architecture blends with tourists in traditional ethnic attire. The rapid clicks of travel photographers’ shutters capture these vibrant moments.

“Exploring night markets, booking travel photography, and dancing at Dai-style discos” are the top three travel must-dos netizens recommend for Yunnan’s Xishuangbanna. Yet for local governments, managing the travel photography industry poses regulatory challenges.

“Most new business models overlap with traditional sectors. Before standardized regulations are established, local governments must strike a balance between relaxed market access and effective oversight,” said an official from the Yunnan Provincial Development and Reform Commission. When regulatory gaps lead to rejected approvals – contradicting the “permission granted unless expressly prohibited” principle of the market access negative list – governments must shift their mindset toward proactive service.

“The capability to approve and the courage to take responsibility stem from coordinated inter-departmental consultations that have helped achieve consensus on understanding emerging business models,” said the official. Currently, Xishuangbanna Dai Autonomous Prefecture has pioneered a long-term mechanism to dismantle market access barriers.

Take tourist photography as an example. Xishuangbanna Dai Autonomous Prefecture has optimized market access approval. It has simplified registration and approval procedures by implementing the “separation of operating permits from business licenses” reform and intelligent registration for individually-owned businesses. In addition, a data-sharing mechanism among government departments, public security organs, and the taxation department was established for the mutual recognition of information.

“We obtained a business license at a one-stop counter within half an hour. As newcomers to tourist photography, we receive visits from government staff from time to time to guide us on policies and market dynamics,” Sun Yu, owner of a photography studio in Xishuangbanna’s Gaozhuang Scenic Area, said.

Sun opened her first studio in May 2023, and then expanded with a second one in December 2023.

At her second studio, customers streamed in and makeup artists had their hands full from morning to night, preparing visitors for the camera.

“It’s peak season because of the Dai Water-Splashing Festival. We serve over 200 tourists daily, twice as many as our regular days,” she said.

Statistics show that as of April 10, 2025, the Gaozhuang Scenic Area alone had 290 tourist photography businesses, up 90 percent from late 2021. Among them, individually-owned businesses accounted for 92.21 percent.

The shift from mandating “what enterprises can do” to regulating “what they cannot” underpins a transforming governance philosophy. Government focus was redirected from ex-ante approvals to in-process and ex-post oversight; Passive regulation was also changed into proactive service delivery.

Guo Liyan emphasized, “The negative list approach has tangibly streamlined administration, cutting market entry barriers while boosting regulatory efficiency.”

While adopting a domestic market Negative List, China exemplifies reform through “shorter lists, freer markets.” The NDRC affirmed that reform is “ongoing, and never complete,” pledging further pilot expansions and refined supervision to institutionalize policy dividends.

An Ning is a reporter with China Development and Reform News.