China Tax Alert - Issue 15, July 2014 The Shanghai Municipal Government has recently released the Special Administration Rules for Foreign Investments in China (Shanghai) Pilot Free Trade Zone relating to the Negative/Exclusion List. Compared with the 2013 version, the 2014 Negative List cuts the number of special administration measures on foreign investment from 190 down to 139, including 110 restrictive measures and 29 prohibitive measures. The issuance of the widely-followed 2014 Negative List signifies the Shanghai Municipal Government’s commitment to increase openness, transparency and maneuverability of foreign investment in China (Shanghai) Pilot Free Trade Zone. Based on the previous version, the 2014 Negative List lifts the barriers imposed on foreign investment in certain industries. It is undoubtedly a positive message to those investors who desire variance greater degree of freedom in the Pilot FTZ.