Connect with us
The clever new way to send money abroad

China

China Eases Foreign Investment Restrictions in Free Trade Zones

China has relaxed restrictions on foreign investment in the country’s 11 free trade zones (FTZs), per a decision released by the State Council, China’s cabinet

Published

on

China has relaxed restrictions on foreign investment in the country’s 11 free trade zones (FTZs), per a decision released by the State Council, China’s cabinet

The Decision on Temporarily Adjusting Relevant Administrative Regulations, State Council Documents and Departmental Rules Approved by the State Council within FTZs (the Decision) updates various administrative regulations to extend to China’s new FTZs, and relaxes investment restrictions in 16 industries.

Several of the relaxed rules introduced by the Decision are technically only temporary. The Decision directs the departments in charge of the relevant industries to issue or amend regulations to formalize the changes.

The industries affected by the Decision are shipping, printing, civil aviation, certification and accreditation, entertainment venues, education, travel agencies, direct sales, gas stations, maritime transportation, retail and wholesale, aircraft, urban rail, internet cafés, banking, and performance brokerage.

The complete changes introduced by the Decision are as follows:

Note: Item (1) to Item (9) were previously temporarily adjusted for the Shanghai, Guangdong, Tianjin, and Fujian FTZs, and the new temporary adjustments shall apply to the other FTZs. Item (10) to Item (16) shall apply to all FTZs.

The relaxed rules should be welcome for investors in the affected industries looking to test the Chinese market or expand their operations in China’s growing number of FTZs.

Last year, China officially opened seven new FTZs, bringing its total to 11, and reduced investment restrictions with a new FTZ Negative List.

However, the Decision appears to merely formalize many of the changes introduced in last year’s FTZ Negative List, as well as the Catalogue for the Guidance of Foreign Investment Industries, by updating accompanying regulations accordingly. For example, the FTZ Negative List already liberalized foreign investment in Internet cafés and aviation, among other industries. The Decision therefore largely updates rules that were made outdated by recent regulatory changes.

Although the Decision does not offer many notable new liberalizations, it gives foreign investors more regulatory clarity about the implementation of the FTZ Negative List, and shows that the FTZs and industry regulators are moving forward with the changes. As the Decision directs relevant industry regulators to formulate accompanying administrative measures, investors can expect new industry-specific rules for foreign investment in China’s FTZs to be issued shortly.

By Alexander Chipman Koty, China Briefing, Dezan Shira & Associates

Source : China Eases Foreign Investment Restrictions in Free Trade Zones

Click to comment

Leave a Reply

Economics

China’s new three-child policy highlights risks of aging across emerging Asia

Thailand’s (Baa1 stable) total dependency ratio is set to jump nine percentage points to 51% by 2030 – a faster increase than China’s – which will pressure public and private savings through higher taxes and social spending, reducing innovation and productivity gains.

Published

on

Street vendor in Bangkok

Population aging in China (A1 stable) and other emerging markets in Asia will hurt economic growth, competitiveness and fiscal revenue, unless productivity gains accelerate, according to a new report by Moody’s Investors Service.

(more…)
Continue Reading

China

Clear skies over Asia’s new foreign investment landscape?

Published

on

Compounding the fallout of the US–China trade war, the global pandemic and recession have caused considerable speculation on the future of foreign investment and global value chains (GVCs). But though there is likely to be some permanent change, it will probably not be as great as politicians expect.

(more…)
Continue Reading

Most Read

Recent