RULES ISSUED TO ENCOURAGE THE ESTABLISHMENT OF FOREIGN COMPANIES
November 10, 2008 | BY
clpstaff &clp articlesGovernment loosens approval process for foreign-invested advertising enterprises
Foreign-invested advertising companies have an easier path into the Chinese market following the Chinese government's decision to hand over a significant amount of authorising power to local governments.
The move is seen as an improvement to the approval procedure on foreign-invested advertising enterprises.
“I think it's the government's intention to encourage more foreign advertising enterprises to invest in China,” said Zhang Yan, partner at HaoLiWen PRC Attorneys.
The new rules, Provisions for the Administration of Foreign-invested Advertising Enterprises, also allow for the provincial administration for industry and commerce to make its own decisions on the issuance of the opinion on the examination and approval of foreign-invested advertising enterprise projects.
Application times have been reduced as the procedure for a wholly foreign-owned advertising enterprise's establishment has been simplified, allowing foreign investors to complete their application at a provincial level.
“I think this is good news, because the revised rules make the establishment of a wholly foreign-owned advertising enterprise easier than before,” Yan said.
However, Yan said that such regulations will generate increased competition in the local advertising market, as more foreign advertising enterprises could enter into such markets.
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