The Ramifications of China’s Updated ‘Negative List’

Contact Your Elected Officials
The Epoch Times Header

Beijing is tightening the screws over more industries, including news media and cryptocurrency mining, in a bid for further control of China’s economy.

The Chinese Communist Party (CCP) updated its “Negative List,” outlining Chinese industries and activities in which investment is barred, which could have broader ramifications for global investors. The announcement was released by the National Development and Reform Commission, the country’s top agency responsible for central economic planning.

The latest draft, released Oct. 8, had two major additions. One is the news publishing and services industry. This means that private capital cannot invest in the news media sector, only state capital (government agencies and state-controlled financial institutions) can. The specific prohibited activities include news collection, broadcasting, republishing of foreign news, broadcast of events containing political views, opinions, and values, and setting up the business operations of the aforementioned activities.

The other industry added to the list is cryptocurrency mining. This one is likely a formality as the Chinese Communist Party (CCP) has effectively rooted out almost all cryptocurrency mining throughout the country already. In addition to mining, Beijing earlier this year has effectively choked out broader cryptocurrency trading and buying activities by ordering its financial institutions to stop engaging with cryptocurrency-related firms, and banned trading by its citizenry.

The former is more interesting and is the next step in CCP regime boss Xi Jinping’s broader economic agenda of exerting more control over China’s massive economy. Earlier efforts have included structural changes to the nation’s education sector, internet and services sector, ride-hailing and gigs sector, as well as video games and entertainment sectors.

Xi’s latest edicts over the news gathering, production, and broadcast industry will grant the Party even greater control over how information is disseminated in China. Such propaganda machines have always been indirectly state controlled, as internet monitors and government watchdogs tightly monitor the type of news and opinions circulated, but in the last few decades there have been a proliferation of non-state-owned news media. The financial magazine Caixin, for example, is not entirely government-owned but being a mainland Chinese media it is presumed that Caixin’s articles and editorials are more or less in line with official CCP views.

So this type of media operation will be barred from obtaining private capital going forward. So far, it’s unclear whether existing media companies with private capital need to divest their capital or can be grandfathered in some manner.

Another complication—which has ramifications for U.S. investors—is the increasingly blurred lines between technology firms and media companies.

Alibaba Group Holding Ltd., a U.S.-traded company, has indirect ownerships in various print and digital media outlets and other broadcast entities in China. For example, Alibaba owns English-language Hong Kong newspaper South China Morning Post and technology-focused online news magazine Yicai.

Nasdaq-traded Weibo Corp., which operates a Twitter-like app in China, could be interpreted as a platform that republishes news and carries messages that could be viewed as political opinion. Being traded in New York, foreign and U.S. investors have an indirect financial interest in Weibo’s Chinese platform.

Hong Kong-traded Tencent Holdings Ltd., which also issues over-the-counter ADR shares in the U.S. market, runs the ubiquitous social media platform WeChat. It also owns Tencent Video, a video-streaming website. While none of these are direct media companies, they could carry messages and opinions related to politics and social values that CCP could deem to be sensitive.

While Chinese state media such as Xinhua and People’s Daily freely operate in the United States, China has effectively shut the door—if only it was slightly ajar previously—on foreign capital into its domestic media industry.

The “Negative List” also introduces even more complications for U.S. investors who own shares in Chinese technology firms with media or media-like subsidiaries and products.

The amount of regulatory risks in doing business in China is piling up, with seemingly no end in sight.

By Fan Yu

Read Original Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

The Sacred Honor of the 56

Today we're celebrating the sacred honor of the 56 men who signed the Declaration of Independence.

Alligator Alcatraz: A Bold Step Toward Secure Borders

Alligator Alcatraz funded through FEMA, represents a decisive move by the Trump admin to address illegal immigration with efficiency and resolve.

Is America Broke?

Silicon Valley investor and economic commentator Balaji Srinivasan made...

Hungary: Pride™ Cometh Before the Color Revolution

The EU engaged in a diplomatic siege of the Eastern European nation-state of Hungary pressuring it into embrace global trannyism or face wrath of Brussels.

Understanding the Trump/Musk Feud

The passion Trump and Musk exhibit over the OBBB is not contrived or for show. Each is addressing the problem from completely different approaches.

Federal Officials Warn of ‘Lone Wolf’ Terror Threats on July 4, NY Governor Says

NY Gov. Kathy Hochul confirmed that federal officials informed her about a possible terrorist threat ahead of the July 4 Independence Day holiday.

Record 1 in 5 Buyers of New Cars Committing to $1,000-Plus Monthly Payments: Edmunds

The share of new car buyers committing to make monthly payments of $1,000 or more hit an “all-time high” in the second quarter of 2025.

US Economy Adds 147,000 New Jobs, Unemployment Rate Dips to 4.1 Percent in June

The U.S. job market remained strong in June, as labor conditions continued to hold up amid economic uncertainty.

Bryan Kohberger Pleads Guilty in Stabbing Deaths of 4 University of Idaho Students

Bryan Kohberger, charged in the stabbing deaths of 4 University of Idaho students in 2022, entered a guilty plea deal to spare him the death penalty.

US Keeps Pressure on Chinese Goods Amid Vietnam Trade Deal

Transshipping—rerouting goods through a third country to disguise the origin of the products—is a focal point of trade negotiations with Asian markets.

White House Report Reveals Top Earners, Staffers Working for No Salary

The Trump admin released its yearly report that shows the salaries for White House staffers, also revealing officials who aren’t accepting salaries at all.

Transportation Secretary Urges Governors to Remove Political Messages From Crosswalks, Intersections

Duffy sent letters to governors, mayor of D.C., and gov of Puerto Rico urging them to remove political messaging from intersections and crosswalks.

Bessent: US, India Near Agreement to Lower Tariffs

The United States and India are “very close” to a trade agreement, Treasury Secretary Scott Bessent said on Tuesday.
spot_img

Related Articles