On The Negative-list Scheduling Approach In China(shanghai) Free Trade Pilot Zone

Under the overwhelming tide of global economic liberalization, it has been the most significant to develop a new system of liberal economy in our countries’ defining period for accomplishing well-off society. As the timing of negotiating China-U.S. Bilateral Investment Agreement, China launched China(Shanghai) Free Trade Pilot Zone(hereinafter referred to as "Shanghai FTZ") on 29 th September, 2013 for exploring a novel economic development mode fitting in China’s status quo, accumulating economic openness experience and eventually applying to the entire country. To innovate administrative mechanism for foreign investment admission, among other things, is one of the most pivotal and challenging reformation. The scheduling approach to foreign investment admission adopted in Shanghai FTZ is pre-establishment national treatment and negative listing mode, namely all the sectors other than being set forth in the list shall enjoy pre-establishment national treatment, which is totally distinctive from the existing hybrid listing mode enforced in other regions(except for three free trade zones which are to be established in Guangdong, Tianjin and Fujian province), namely there set out both allowed and restricted or prohibited sectors in the list, while whether those absent ones are allowed shall depend on countries’ discretion. Despite the fact thatsuperficially negative list seems more liberal in comparison to hybrid one, on earth if it is due to the selection of scheduling approach or other factors remains disputable. Only the prerequisite question is solved first can the negative approach in Shanghai FTZ be further improved so as to become more open on the right track as well as prevent risks and problems from arising.The dissertation is divided into three chapters to address two aforesaid issues, that is, scheduling approach to market access in the domain of international investment and trade, international experience of negative listing administrative mode and the negative approach in Shanghai FTZ. The first chapter addresses the first issues mainly by comparative analysis. On the ground of clarifying the differences between two major scheduling approaches at the international level, namely GATS-style hybrid and NAFTA-style negative method, the genuine reasons resulting in their advantages and disadvantages are addressed. In effect, negative list itself is not inherently superior in terms of liberalization promotion. Hybrid list may achieve the same degree of liberalization through appropriate mechanisms. Rather, the genuine sources fostering liberalization remain the nature of listed nonconforming measures and relevant country’s willingness to open and the latter is more important. Further, the unique structure of negative list may on the contrary cause huge administrative burden and material economic consequences on countries, especially developing ones, while hybrid list may relieve such worries to some extent. The second and third chapter address the second issues, that is, the improvement of the negative approach in Shanghai FTZ. Since China’s willingness to open up is quite clear, then the issue lies in how to properly reflect such willingness in the negative list in order to yield optimal effects. The second chapter draws lessons from relevant regional agreements,bilateral treaties and domestic legislation as the foundation for the specific research on the negative approach in Shanghai FTZ addressed in next Chapter. The last Chapter elaborates on the development of the negative approach in Shanghai FTZ, confirms its progress, influences and deficits and eventually in consideration of all the previous analysis, propose improvement suggestions in terms of three aspects: the definition of foreign investment, negative list itself and supporting mechanisms.