CHINA: Government issues Circular outlining reduced Restrictions on Foreign Investment

Wednesday January 18 2017

The Chinese State Council has released a Circular that provides for measures to encourage foreign investment, as part of an effort to build “a new open economic system” in China.

The Circular states that Foreign Enterprises will face fewer restrictions when entering service, manufacturing and mining sectors, and provides for greater protection of intellectual property rights of foreign-invested enterprises.

Additionally, the Government will relax entry controls for banks, securities brokerages, and futures and insurance companies, and lift restrictions in rail transport equipment manufacturing, motorcycle production, fuel ethanol, and oil and fat processing. Thresholds in oil shale, oil sand and shale gas sectors will be lowered for overseas companies.

The Circular also states that foreign investment will be encouraged in certain sectors including; accounting, architecture design, telecom, internet, culture, education and transport.

Foreign-funded companies will be encouraged to invest in high-end, smart and green manufacturing, participate in infrastructure work in energy, water conservation and environmental protection, and build plants in less-developed central, western and northeastern regions.

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