China aims to ease regulations for foreign enterprises investing in free trade zones (FTZs) in order to improve the "negative list" approach and provide legal protection for reform and opening-up. The State Council has decided to lift several restrictions or investment limitations for foreign investment in FTZs, a notice recently published said, according to Xinhuanet. "The negative list system with its simple model, high level of transparency and simplified procedure has lowered the cost and improved efficiency for foreign companies in China," said Sun Yuanxin, deputy head of the Institute of Free Trade Zones with Shanghai University of Finance and Economics. "The negative list system has been proved to be welcomed as the number of new foreign companies and foreign investment climbed," said Professor Gong Bohua with Law School of Fudan University. Gong said the system helped to establish a fair, transparent, and predictable business environment in FTZs, under the rule of law. China is now the worlds second-largest economy.