State Council Office for Restructuring Economic System and State Economic and Trade Commission, Promoting the Development of Chain Business Several Opinions

Issued: August 12 2002

Main contents: Besides pointing out the general benefits of chain business to the economy, the Opinions touch upon a few ideas of promoting the development of this sector. The Opinions urge local governments and administrative departments to support the growth of chain business through mergers and acquisitions and the listing of high-growth chain enterprises (Section 2.1). Section 2.2 suggests the acceleration of the construction of logistic and distribution infrastructure. More efforts shall be made to introduce foreign capital into traditional retail business and to use foreign investment and management skills to modernize traditional retail business (Section 2.4). Approval procedures in respect of this sector shall be further streamlined. Generally, once a head office is approved, no more approval (other than local filing or registration) shall be required for the setting up of outlets (Section 3.1). In certain circumstances, tax affairs of a franchise business may be consolidated in the head office at the provincial level (Section 3.2).