Researches On The Legal System Of The Negative List For Foreign Investment Admission In Service Industry

The rapid development of domestic service industry and improvement of international service trade competitiveness are inevitable requirement of China’s Opening-up policy under the new situation. As a result of deep-going transformation of international service trade rules in post-GATS era led by developed countries such as the United States, the status change of service industry in the structure of China’s economy and the pressures from growing deficit of service trade, China faces urgent pressure from the reform of foreign investment admission in service industry.The primary goal of China (Shanghai) Pilot Free Trade Zone (Shanghai FTZ) which launched in 2013 is expanding opening up of service sector to the world through government function reform. As a significant change of the supervision of foreign investment admission, negative list mode adopted meets the requirements of transformation of international service trade rules and reform of China’s domestic foreign capital regulations. Although the negative list (2013 version) of Shanghai FTZ draw great public concern, the simply copying of "The Catalogue for the Guidance of Industries for Foreign Investment" makes people to rethink how to make proper negative list. Therefore, in order to perfecting the further foreign capital negative list of service industry sector in China, it is necessary to conclude domestic foreign capital regulations and summarize the successful experience of abroad.The first part of this article introduces the basic theory of negative list for foreign investment admission in service industry. First, the article presents relative concepts and characteristics of negative list in the service industry foreign capital admittance and then with the SWOT model analysis, the passage summarizes the characteristics of foreign investment in service sector. The relation and comparison of foreign capital admission in service industry, international service trade rules and internationalization of services are introduced in addition. Secondly, the article focuses on the theoretical foundation analysis of negative list form international treaty obligations, economic and legal perspectives. At the last of this part, the article illustrates the necessity of adopting negative list in the regulation foreign investment admission in service sector through empirical research.The second part presents and summarizes the current situation of foreign investment admission regulation in service industry of China. At the beginning, the article analyses the opening-up degree of service industry under the framework of GATS and then summarizes the position of service department in the whole structure of foreign capital admission in China. In addition, the paragraph gives a full picture of all sorts of service sectors admission of foreign capital. Then the passage illustrates the structure of China’s administrative licensing system for foreign capital in service industry with three sheets. As a key perspective of this article, the article makes a comparison of Shanghai FTZ negative list (2013 version) with "The Catalogue for the Guidance of Industries for Foreign Investment". In the last part of this part, the paragraph summarizes the overall situation of China’s admission system for foreign capital in service department.Foreign stones may serve to polish domestic jade. In the third part the article give us examples of negative list. With the United States and EU (27 members) as the developed countries mode, Indonesia and the Philippines as the developing countries mode and Cambodia as transferring countries mode, the article illustrates three types of negative list abroad in the service industry admission regulation for foreign capital. Finally, in order to concretizing the requirement from the international treaties, the article analyses the negative list examples of Bilateral Investment Treaties (BITs) and Regional Trade Areas (RTAs).As a point of junction, the forth part summarizes the enlightenment of negative list abroad in four directions: maintaining the order of market competition, basing on the difference of specific sorts of service department, backing up with a normative legislation system and emphasizing prominent areas.The fifth part is the essences of this article. In this part, the article proposed in four aspects to perfecting China’s negative list for foreign investment admission in service industry. First the article introduces the arguments of "Single Track or Double Track" and "Organization Standard or Capital Standard" to find a legislation mode of service industry admission regulations and even the foundation of foreign capital entry law. Then the article analyses the function orientation of negative list in order to clearing objectives of China’s negative list in service departments. In the next, the paragraph proposed three specific methods to improve negative list in Shanghai FTZ and national legislation. Finally, with the perfection of commercial registration of business service enterprise, standardization legislation of service and judicial scrutiny of administrative recording, the article tries to formulate supporting legal system to back up the legislation and execution of negative list for foreign investment admission in service industry.The article ended with a brief summary of the logic of writing.