THE government Saturday further relaxed restrictions imposed on foreign investment in its free trade zones, in the latest step to fulfill its promise to open up the economy.

Publishing a revised “negative list” for investment in the zones, the National Development and Reform Commission (NDRC), China’s top economic planner, said curbs in oil and gas exploration, nuclear fuel production and telecommunications would be eased.

Foreign investors will no longer have to conduct oil and natural gas exploration and development through joint ventures, and a ban on foreign investment in production of nuclear fuel and radioactive minerals will be lifted, the NDRC said in a statement.

Foreign investment limits on breeding of new crop varieties and seed production for wheat and corn will be relaxed, and opening of value-added telecommunications will be expanded from Shanghai’s free trade zone to other zones, it added.

On Thursday, China unveiled a long-anticipated easing of foreign investment curbs on sectors including banking, the automotive and heavy industries, and agriculture.

The number of items on the negative list was cut to 48 from 63 in the previous version published in June last year.

In addition to confirming already announced pledges to remove ownership limits fully on industries such as insurance and autos within the next three to five years, China will also ease or scrap ownership caps on businesses including ship and aircraft manufacturing, and power grids.

China has repeatedly said it will continue market reforms at its own pace, stressing it will make and implement decisions on opening up markets based on its own needs and not due to external pressure.

China flagged in April that it would implement a number of the measures by the end of this year.

The changes include a previously announced decision to allow 51-percent foreign ownership of brokerages and life insurers, and to remove that cap entirely by 2021. Current rules limiting a single foreign financial institution’s stake in a Chinese commercial bank to 20 percent will also be abolished July 28.

The rule that investment by multiple overseas financial institutions in Chinese commercial banks must not exceed 25 percent will also be lifted.

Foreign ownership limits for passenger car manufacturing will be removed by 2022, as already announced. Restrictions on power grids, passenger railway transport and shipping companies will also be lifted.

(SD-Agencies)