China's new negative lists will take effect on July 30, along with the implementation of a revised catalogue of industries, to encourage foreign investment. The negative lists, one for pilot free trade zones and the other for the rest of the country, have fewer restrictions compared to last year's lists.

Several new measures have been introduced in industries such as service, manufacturing, mining and agriculture, as more participation is allowed for foreign investment. China will build a fairer and more convenient investment environment based on wider openness to promote global cooperation in the industrial chain.

It has been one of the priorities of China's economic reform to encourage foreign investment and perfect corresponding management. Along with supply-side structural reform and industrial structural upgrading, foreign investment will play an essential role.

Foreign investment increases the input of capital and labor, contributing to more output and increasing labor income, which can support the expansion of domestic demand.

The entry of high-quality foreign capital that brings advanced production technology can promote technological progress in China.

In addition, Chinese enterprises will also benefit from the advanced management and operation principles of foreign companies. Besides, the imbalanced economic development in different regions has always been a problem, thus, guiding foreign capital to these regions can promote coordinated development.

(This is an edited excerpt of an article originally published in People.cn on July 1)