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Continuously shortened negative list for foreign investment unleashes market vitality in China

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By Zhao Zhanhui, He Linping, Luo Shanshan, People’s Daily

In recent years, China has been steadily pushing forward the reform of its market access system, one of the fundamental systems underpinning the country’s socialist market economy. By continuously lowering market entry thresholds, increasing transparency of market rules, and creating a fairer market environment, China has fully stimulated the endogenous power and innovation vitality of various business entities.

China’s negative list system allows all types of business entities to equally enter industries, fields, and businesses that are not forbidden by the list in accordance with the law, without the requirement for further government approval.

In 2013, with the establishment of China (Shanghai) Pilot Free Trade Zone (FTZ) in east China’s Shanghai, the country’s first negative list for foreign investment was unveiled and implemented. The list was extended to other pilot FTZs in 2015 and implemented nationwide in 2016.

Apart from the negative list for foreign investment, China has also established the negative list for market access, the first country in the world to introduce the market access negative list into its domestic economic governance.

In 2016, the negative list for market access was piloted in four provinces and municipalities in China, and then expanded to 15 provinces and municipalities in 2017. In 2018, a nationwide unified negative list for market access was launched, marking the expansion of the list to the whole country.

By implementing the system of a negative list for market access, China has clearly defined the boundaries of government responsibility at the entry stage, fully leveraging the decisive role of the market in resource allocation and institutionalizing this approach.

Both the negative list for foreign investment and the negative list for market access started with pilot programs before gradually expanding to more regions based on the experience gained.

The negative list system has driven relevant institutional reforms in approval, investment, and regulation, effectively modernizing China’s governance system and capacity.

At the same time, China has constantly improved the mechanism for dynamic adjustment of the negative list. For instance, the current market access negative list for 2022 has reduced the number of prohibited and restricted items by 64 percent compared to the 2016 pilot edition.

The negative list system represents an important arrangement of China’s institutional opening up.

The gradual shortening of China’s negative list for foreign investment parallels the growth of foreign-invested enterprises in China.

The 2018 edition of the country’s negative list for foreign investment specified that by 2022, China would remove foreign ownership limits in the automobile industry and lift the regulation preventing foreign automakers from forming more than two joint ventures in the country.

In October 2018, the German carmaker BMW Group drafted an agreement to acquire a 25-percent stake in its Chinese joint venture, BMW Brilliance Automotive Ltd. (BBA).

In 2022, as China fully implemented the shortened negative list for foreign investment, the agreement was formally implemented, increasing BMW Group’s stake in BBA to 75 percent.

In April this year, the German automaker announced an additional investment of 20 billion yuan ($2.75 billion) in BBA’s production base in Shenyang, capital of northeast China’s Liaoning province, ready to start localized production of its new models.

The improved negative list system represents China’s efforts to promote institutional opening up. China has been committed to promoting high-standard opening-up, expanding market access, shortening the negative list for foreign investment, and enhancing the opening up of modern service industries. It has already announced the removal of all restrictions on foreign investment access in the manufacturing sector.

The continuously shortened negative list has helped accelerate the opening up of China’s service sector.

In March this year, Standard Chartered Securities China Limited (SCSCL), the first newly-established wholly foreign-owned securities firm in China, officially began operations.

The removal of market access restrictions in China’s financial sector has motivated Standard Chartered Group to accelerate its business expansion in the country.

“The Chinese market has been the largest contributor to Standard Chartered’s global network revenue for many years, and we look forward to the broader opportunities brought by China’s continuous opening-up,” said Jerry Zhang, CEO of Standard Chartered Bank (China) Ltd.

From the initial 190 items to the current 31 items in the national version and 27 items in the FTZ version, the shortened negative list for foreign investment has not only facilitated the growth of foreign-invested enterprises in China but also witnessed China’s accelerated high-standard opening up.

Institutional opening-up in China’s trade sector has also been advanced continuously.

On November 4, 2020, Chinese President Xi Jinping delivered a keynote speech via video at the opening ceremony of the third China International Import Expo held in Shanghai. He noted that China will continue to leverage the pioneering role of pilot free trade zones and free trade ports in steering opening up, and will introduce a negative list for cross-border services trade,

Eight months later, China released its first negative list for cross-border services trade. Shortly after, Khoo Wut Fat William, a lawyer from China’s Hong Kong Special Administrative Region (SAR), registered and obtained certification from the department of justice in south China’s Hainan province, becoming the first legal consultant from Hong Kong SAR to join a Hainan law firm.

This year, China’s Ministry of Commerce rolled out national and pilot FTZ versions of negative lists for cross-border trade in services, extending the negative lists for services trade to the whole country and promoting the tiered opening-up for cross-border trade in services.

In the first five months of this year, the number of newly established foreign-invested enterprises in China increased by 17.4 percent year on year.

China attaches great importance to steadily expanding institutional opening-up and market access. By shortening the negative list for foreign investment and creating a more market-oriented, law-based, and internationalized business environment, China will undoubtedly provide a broader market space and more opportunities of win-win cooperation for countries worldwide.

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Expressway service station in Shandong achieves carbon neutrality

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By Li Rui, People’s Daily

A man surnamed Lin, driving a new energy vehicle, was on his way from Jinan to his hometown Weifang, both in east China’s Shandong province. As the battery of his vehicle ran low, he pulled up in a service station along the Qingdao–Yinchuan Expressway.

Experience told him that a service station was a place where drivers and passengers could refuel vehicles, use the bathroom, grab a drink of water and have a meal. However, he found this service station a little bit different.

The Jinan East service station was a key carbon-zero station built by Shandong Hi-Speed Company Limited. It was put into operation on July 26, 2019. During China’s just-concluded  National Day holiday, the service station received an average of 13,000 vehicles and 44,000 people on a daily basis.

“How long does it take for a vehicle to get 200 kilometers of range with this ultra-fast charging pole?” Lin asked a staff member of the service station.

“One second for one kilometer of range,” the staff member replied, pointing to an advertising board above that said “Get Fully Charged over a Cup of Coffee.”

Being skeptical about it, Lin scanned a QR code on the charging pole with his phone. Then, he unwound outside his car and went to get a cup of hot water. When he came back, he found his car fully charged.

The power level of the charging pole Lin used was 600 kW, and there were also charging poles of different models and power levels available for users to choose from at the service station.

The Jinan East service station covers an area of 300 mu, or 20 hectares. With so many charging poles in service, it consumes about 6,000 kWh of electricity each day. Where does such a huge load of electricity come from?

On the canopy, rows of solar panels were neatly paved. They were a part of a renewable energy utilization system – a 3.2 MW solar farm built on side slopes of the expressway, parking lot canopies and rooftops. The system also comes with a 3.2 MWh power storage facility.

At present, the service station generates an average of over 10,000 kWh of electricity on a daily basis, far exceeding its daily power consumption volume. This saves 1,200 tons of standard coal per year. The service station also transmits extra electricity to the power grid through safe and efficient means.

At noon, the fragrance of food was floating in the corridors of the crowded comprehensive building of the service station. As one of the busiest service stations in Shandong province, the Jinan East service station welcomes over 10 million passengers each year. How does it manage the wastewater generated by such a huge crowd?

In the “backyard” of the service station, there were two white bungalows at the corner of a tree lawn. Inside them, sewage treatment facilities were running, processing wastewater and pumping it back to the water tanks, which would be used for irrigation and floor washing.

The treatment system for waste and pollutant resources successfully addresses the challenges of  the huge variation between water usage peaks and lows, as well as significant greenhouse gas emissions from sewage, effectively recycling and reusing treated water.

“In the past, diesel vehicles were used for service area operations and cleaning, but now they have been replaced with electric vehicles. The catering businesses have also undergone electrification upgrades for their gas stoves, replacing them with clean energy sources wherever possible,” a staff member said.

Carbon emissions are invisible and intangible. How are they measured?

Shandong Hi-Speed Company Limited has independently developed a smart energy management system, which builds a digital twin of the station and displays all relevant data on a screen, including daily electricity generation, charging station power, peak electricity generation periods, air conditioning usage and more.

It is learned that this zero-carbon smart energy management system collects data of all indirect carbon emission sources such as photovoltaics, energy storage, micro grids, lighting, HVAC (heating, ventilation, and air conditioning), and wastewater treatment. It can automatically calculate, make decisions, and intelligently control equipment.

For example, if the air conditioning is set at 26 degrees Celsius indoors, the system can automatically shut down some air conditioners when the temperature falls below this threshold, refining energy management and enabling intelligent equipment control.

According to real-time monitoring by the system, the service station emits an average of 2,060.97 tons of carbon dioxide per year. By planting over 19,000 square meters of greenery, the service station offsets greenhouse gas emissions.

Currently, the forestry area of the service station covers 67,000 square meters, or about 33 percent of the station’s total area. Through forestry carbon sequestration, the system helps reduce an annual average of 3,410.1 tons of carbon dioxide, with a forestry carbon sequestration volume of 53.4 tons of carbon dioxide, realizing “zero-carbon” operations. The service station now has the capability for sustainable carbon neutrality.

“So far, China has built nearly 4,000 pairs of expressway service stations. If we can promote zero-carbon experiences in more service stations, it would be of great significance,” said Zhou Pengfei, deputy director of the energy and environment department of Shandong Hi-Speed Company Limited.

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Qinling Mountains better safeguarded with comprehensive digital platform

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By Zhang Tie, Zhang Danhua, People’s Daily

The Qinling Mountains in northwest China’s Shaanxi province are a natural boundary between China’s north and south in terms of geology, climate, biodiversity, water systems, and soil types.

The unique geographic environment creates abundant moisture, and the rugged terrain harbors rich plant and animal resources, earning the Qinling Mountains the nickname “China’s Central Park” and establishing them as a crucial ecological barrier for the country.

In recent years, ecological protection and restoration of the Qinling Mountains has maintained a priority of Shaanxi province.

“There appears to be waste dumping in the east of Liyuanpo village in Shijing neighborhood,” an alert popped up on the screen of a digital comprehensive monitoring platform for the Qinling Mountains of Huyi district of Xi’an, capital of Shaanxi Province.

Staff member Zhao Na immediately contacted Mao Juan, a local grid officer: “Drones have captured footage, and AI analysis has detected unauthorized dumping.”

In less than an hour, Mao arrived at Liyuanpo village. Upon investigation, she learned that a villager had been renovating his house and had dumped construction waste by the roadside.

She promptly took photos for evidence, uploaded them from her phone, and informed the neighborhood office. After the area was cleared by the following morning, Mao revisited the site, verified the cleanup, and uploaded the update to the platform.

The ecological protection area of the Qinling Mountains covers six districts and counties in Xi’an, accounting for about 55 percent of the city’s total area. The rapid handling of issues like this is a result of an integrated ecological monitoring and protection system for the Qinling Mountains.

The system includes satellites that provide periodic remote sensing images, drones that conduct routine patrol flights, cameras offering real-time monitoring, and 1,240 dedicated grid officers carrying out inspections.

“With this system, countless ‘eyes’ help us protect every ridge and valley of the Qinling Mountains,” said Lei Bo, director of the technology and grid management department of the Xi’an municipal bureau of Qinling ecological environment protection.

From January to August this year, the platform autonomously identified and processed 2,480 cases involving unauthorized construction and dumping. Most cases were resolved within one to three days.

In recent years, Xi’an has continuously improved the systems and mechanisms for regular and long-term protection of the Qinling Mountains. The approach combines human surveillance with technology-based monitoring, and grid-based management with networked coordination, making protection efforts more targeted and intelligent.

Now, the entire landscape can be visualized on a single map, which shows forests, rivers, buildings, and mineral distributions, creates a digital model of the Qinling Mountains.

Each village has its own grid, with at least one grid officer, which forms a four-tiered management system from the municipal level down to villages.

Municipal- and district-level platforms, as well as several industry-specific platforms have been integrated, enabling information sharing and seamless data exchange to form a unified digital supervision system for the Qinling Mountains.

“We can detect even the smallest fire, down to a single lighter, thanks to the integration of thermal, smoke, and light sensors,” said Hua Yiping, director of the Qinling ecological protection and comprehensive law enforcement bureau of Huyi district. The digital monitoring platform now extends to multiple applications, including forest fire prevention, flood control, water quality monitoring, and geological disaster monitoring.

Currently, the populations of wild plants and animals in the Qinling Mountains are steadily increasing, with 99.3 percent of the Qinling area within Shaanxi province now rated as having an excellent ecological environment.

“In the future, we will continue to enhance the automation, intelligence, and precision of Qinling’s protection measures. We aim to refine our monitoring systems and ensure thorough, dynamic inspections and remediation,” said Li Bo, deputy director of the Xi’an municipal bureau of Qinling ecological environment protection.

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SWChina’s Guizhou builds itself into computing power base serving whole country

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By Chen Junyi

At the Gui’an Supercomputing Center, which is located in Guiyang, southwest China’s Guizhou province, over 600 servers are running at full speed, supplying constant computing power to cities like Shenzhen, Guangzhou, and Wuhan, creating a vibrant ambiance with constant hum of cooling fans and flickering indicator lights.

As one of the eight major hubs of China’s national integrated computing power network, Guizhou is actively pursuing the integrated development of data storage and computing, with a particular focus on intelligent computing.

It aims to enhance the capacity in computing power supply, effectively match the supply and demand of computing power within the province and elsewhere, and better utilize computing  power and localize the computing industry, so as to establish a support base serving the whole country.

Guizhou launched its plans to develop data centers ten years ago. It boasts numerous natural advantages for developing the computing industry, such as safe geological conditions, reliable power supply, and low average temperatures. China’s three telecommunication operators, namely China Telecom, China Mobile, and China Unicom, have all set up data centers here, making it the first province in China to host data centers of all the three.

After a decade of development, Guizhou is currently home to 47 data centers, either under construction or in operation, including 25 super-large and large data centers, most of which are located in the Gui’an New Area.

The Gui’an New Area is known for its flat terrain and an annual average temperature of 15 degrees Celsius. The region enjoys 99.5 percent of days with good air quality throughout the year, thereby serving as a natural air conditioner and oxygen bar.

The power usage effectiveness (PUE)of data centers in the region, a metric for energy efficiency, is lower than 1.2, which is at the forefront of all green data centers across the country. It is also one of the areas in China where data centers boast the lowest energy consumption and the longest equipment lifespan.

“As the carrier of computing power, data centers are equipped to support high-performance application scenarios by leveraging advanced computational capabilities and large-scale data processing power through the use of various hardware components such as servers and graphics cards,” said Peng Benqian, head of the Gui’an Supercomputing Center and director of the technology research and development department of Gui’an New Area Science and Technology Innovation Industries Development Co., Ltd., the company that runs the center.

In the past, most data centers in Guizhou were primarily focused on storage. With the rapid development of artificial intelligence (AI), Guizhou is advancing intelligent computing, which forms the basis of AI development. The data centers are rapidly transforming from mere “storage centers” to integrated “storage and computing ones.”

The Gui’an Supercomputing Center, the first of its kind in Guizhou, was put into operation at the end of 2020. “We have more than 600 servers, and the peak computing power has reached 130 petaflops,” Peng said.

“It would take nearly 600 years to create special effects rendering for a 3D animated film with a regular computer. However, the whole process can be completed within 3 months at our center,” he said.

In addition to locally built computing power centers, top internet companies such as Huawei, Tencent, and NetEase have established superlarge computing centers and intelligent computing centers in Guizhou. Besides, many banks have set up their financial data centers in the province.

Guizhou has become one of the regions in China with the strongest intelligent computing capabilities. By the end of July 2024, its computing power had reached 40.55 Eflops (a measurement unit used to determine a computer’s speed), with intelligent computing power amounting to 37.578 Eflops, accounting for over 90 percent.

Just like other commodities, computing power cannot be on a perfect supply-demand balance. Idle computing resources will enter a public computing resource pool and be scheduled by the Guizhou branch of China’s national integrated computing power network to efficiently connect the resource side and the demand side.

The transmission and trading of computing power rely on network infrastructure. Guizhou has established direct connections with 38 cities across China, including Beijing, Shanghai, Shenzhen, and Guangzhou.The computing power can meet the huge demand of the “East data, west computing”project, a key part of China’s digital infrastructure which aims to coordinate the computing capabilities of the country’s eastern regions, where the need for computing is high, with inland western regions like Guizhou, where abundant renewable resources are optimal for building data centers, according to Zhang Jie, head of the business department of Gui’an New Area Data Service Technology Co., Ltd.

Meanwhile, Guizhou is leveraging its computing power to drive industrial development and extend the industrial chain. With the support of computing power, many local companies have begun to explore new opportunities.

Guizhou Tuzhi Information Technology Co., Ltd. is a technology company specializing in geospatial big data application and development and a professional provider of real-time spatial-temporal information services integrating air, space, and ground data. With over 8 years of experience, the company has witnessed the evolution of Guizhou’s big data industry.

“The ecosystem of the big data industry in Guizhou is getting better and better, with refined computing power support, industry applications and data transactions. We have seen increasing productivity and expanding business scope,” Huang said.

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