Opening up to foreign investment
December 18, 2008 | BY
clpstaff &clp articles &New sectors are expected to open in 2009
Last year, regulatory changes were made in sectors such as banking, franchising, advertising, securities, telecoms and aviation; all these industries then experienced rapid development. In the year ahead, further expansion will take place as a result of the expected regulatory steps, although the weak economy means a cautious approach is needed. These are the likely developments:
Advertising
· The Provisions for the Administration of Foreign-invested Advertising (外商投资广告企业管理规定) will encourage more foreign-invested advertising companies to enter the PRC
Aviation
· Direct flights between the mainland and Taiwan will further enhance the industry
· Sixteen terminals for passenger charter flights will be opened in Chengdu, Chongqing and Shenzhen
Banking
· Circulars 50 and 51 will encourage more inbound private equity investments
· To meet the aim of making Beijing a worldwide financial centre, the banking sector will be opened further
· Chinese banks should make more provisions on bad debt to guard against the weakening economy
Insurance
· The draft amendment of the PRC Insurance Law, if passed, will extend applications of insurance funds, improve market exit mechanisms for insurance companies, and provide provisions on the cancellation and bankruptcy of insurance companies
Franchising
· The 2008 Olympic Games has laid the foundation for the franchising business in China – more such business will be attracted to the country
Telecoms
· 3G mobile phone licences will be issued early in 2009
· China Mobile will get the licence to operate TD-SCDMA (a system based on homegrown technology), China Unicom will get the licence for WCDMA and China Telecom will be awarded the CDMA 2000 licence
Securities
· More foreign securities companies will follow CLSA's example of establishing a Sino-foreign securities joint venture
(This article is part of the New directions for China in 2009 special feature)
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