The State Council released the Decisions on Temporary Adjustment of Related Administrative Regulations, State Council Documents and Departmental Rules and Regulations Approved by the State Council in Pilot Free Trade Zones (the Decisions for short) on July 19.

 

In line with the Decisions, the State Council will temporally adjust 18 administrative regulations, including the Detailed Rules for the Implementation of the Law of the People's Republic of China on Wholly Foreign-Owned Enterprises in China, four State Council documents such as the Decisions of the State Council on Investment System Reform, and four departmental rules and regulations such as the Catalogue for the Guidance of Foreign Investment Industries.

 

A total of 51 items will be adjusted. After the adjustment, management of many alteration items  will be shifted from the former approval system to the registration system. Moreover, China will further open up several industries and allow foreign investors to incorporate wholly foreign owned enterprises in corresponding sectors in the pilot free trade zones (FTZ). For example, China will allow establishment of wholly foreign owned iron and steel production enterprises in FTZs, allow foreign investors to engage in R&D, design and manufacturing of the passenger service facilities and equipment that serve the high-speed railway, and railway passenger lines and intercity railway, and allow foreign investors to engage in wholesale of salt in the pilot FTZs in the wholly foreign owned form.

 

The other fields in which wholly foreign owned enterprises are allowed in the Decisions include: manufacturing and R&D of the automobile electronic bus network technology and electric power steering system electronic controller; manufacturing of H-power battery (energy density≥110Wh/kg and cycle life ≥2000 times); construction and operation of comprehensive hydro projects; and construction and operation of service stations and air transport sales agencies etc.

 

Source: Translated from Invest Guangzhou, July 20, 2016