Connect with us

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

Avatar

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 The Decision therefore largely updates rules that were made outdated by recent regulatory changes.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

Comments

China

RCEP and China: Reimagining the future of trade in Asia

The Regional Comprehensive Economic Partnership (RCEP) could eventually usher in an era of much deeper regional integration: for corporates doing business in the region, their future success may well hinge on how adeptly they manage to navigate the evolution of Asia’s trade landscape under the RCEP.

Avatar

Published

on

Last month, 15 countries in the Asia-Pacific region – including the 10 member states of the Association of Southeast Asian Nations (ASEAN) as well as China, Australia, Japan, New Zealand, and South Korea – signed the landmark Regional Comprehensive Economic Partnership (RCEP) on the final day of the 37th ASEAN Summit.

(more…)
Continue Reading

China

Thailand ready to ink big Chinese-backed trade deal

The RCEP will cover all 10 Asean member states plus five partners: China, Australia, Japan, New Zealand, and South Korea and will take effect from the middle of 2021 if at least six Asean members and three partners agree to its terms.

Olivier Languepin

Published

on

Thailand is set to sign the world’s biggest free trade agreement with Japan, China, South Korea and 12 other Asia-Pacific countries at the 37th Asean Summit this week.

(more…)
Continue Reading

Business

Great Wall Motor (China) takes over GM factory in Thailand

The Thai production hub will become operational in the first quarter of 2021 with automobile production capacity of 80,000 units per annum.

Avatar

Published

on

Chinese carmaker Great Wall Motor (GWM) hosted a ceremony on November 2nd to celebrate the latest milestone in taking full ownership of Rayong Manufacturing Facility in Thailand.

(more…)
Continue Reading

Latest

Most Viewed

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 13,621 other subscribers

Trending