Export Procurement Centres as a New Foreign-invested Trading Vehicle
January 31, 2004 | BY
clpstaff &clp articlesA new law issued by the Ministry of Commerce and others has allowed for the establishment of wholly foreign-owned export procurement agencies.
By Yang Xun, Kaye Scholer, Shanghai
In January of 2004, Li & Fung, one of Hong Kong¡¦s leading business groups and one of the world¡¦s largest consumer goods trading companies, set up Li & Fung (Shanghai) Trading Co. Ltd., a wholly-owned subsidiary in China, and obtained the right to export products sourced in mainland China. This is the first wholly foreign-owned trading enterprise organized under the Administration of the Establishment of Foreign-invested Export Procurement Centres Procedures (关于设立外商投资出口采购中心管理办法)(FIEPC Procedures), which were promulgated by the Ministry of Commerce (MOFCOM) with three other ministries on November 17 2003 and became effective on December 17 2003. The FIEPC Procedures are a milestone in the opening of China¡¦s trading industry to foreign investors.
Overview
This premium content is reserved for
China Law & Practice Subscribers.
A Premium Subscription Provides:
- A database of over 3,000 essential documents including key PRC legislation translated into English
- A choice of newsletters to alert you to changes affecting your business including sector specific updates
- Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
Already a subscriber? Log In Now