"The new negative list certainly is shorter and opens more sectors, especially the financial sector," said Mei Xinyu, a researcher at the Chinese Academy of International Trade and Economic Cooperation.

More preferential policies and lower market thresholds have been granted for foreign-provided services, Mei added.

The white paper said China has revised the catalog for the Guidance of Foreign Investment Industries twice over the past five years, reducing restrictive measures on foreign investment by 65 percent.

The government will ease market access by removing the equity cap on foreign investment in sectors such as shipbuilding and aircraft and automobile manufacturing.