II. General requirements and applicable conditions

5. General requirements.

Upholding the direction of reform towards the socialist market economy, we will ensure that the market plays a decisive role in the allocation of resources while better playing the role of the government, transform government functions while exercising government administration in an innovative way, and stimulate the market's vitality while strengthening market regulation. We will relax and regulate market access, simplify and optimize administrative review and approval, strengthen and innovate on market regulation, and speed up establishing a new system to regulate market access, in which the market is open, fair, standardized and orderly, enterprises enjoy independent decision-making and fair competition, and the government makes clear its power and responsibilities and enforces strong supervision.

All regions and departments should earnestly put in place the negative list system for market access. For the investment and business operations made by all kinds of market players on a voluntary basis, once there are areas or procedures concerning market access, the negative list system should be established and implemented; when conditions are mature, the current directory-based items about market access will be incorporated into the negative list for market access.

6. Categories.

A negative list for market access includes two categories: "prohibited" and "restricted" items. It applies to the investment and business operations made by all kinds of market players on a voluntary basis, including initial investment, expansion investment, mergers and acquisitions as well as other market entry. For prohibited items, market players have no access to them and administrative bodies are not allowed to give review and approval or handle relevant formalities. For restricted items, market players may file an application and administrative bodies make the decision according to the law whether they are given access; or market players may enter these areas in accordance with government regulations on access conditions and methods. All kinds of market players may enter sectors, areas and businesses not on the negative list on an equal basis and according to the law.

7. Applicable conditions.

If all kinds of market players are involved in investment, business operations and other market entry in the following areas, we can, according to laws, administrative regulations and the relevant provisions of the State Council decisions, adopt management measures to prohibit access or restrict market players' qualifications, equity ratio, business scope, operation formats, business models, spatial layout, and national land spatial development and protection:

Relevant sectors, areas and businesses concerning national security such as the safety of people's life and property, political security, homeland security, military security, economic security, financial security, cultural security, social security, science and technology security, information security, ecological security, resource security, nuclear security and security in emerging fields;

Relevant sectors, areas and businesses concerning distribution of the major national productive forces, strategic resources development and major public interests;