State Council, Circular on Several Measures to Expand the Opening to the Outside World and Actively Utilize Foreign Investment

国务院关于扩大对外开放积极利用外资若干措施的通知

February 24, 2017 | BY

Susan Mok

Financial sectors will be further opened to foreign investors.

Clp Reference: 2300/17.01.12 Promulgated: 2017-01-12

Issued: January 12 2017

Main contents: In the service industry, focus is placed on relaxing the restrictions on the access of foreign investors to banking financial institutions, securities companies, securities investment fund management companies, futures companies, insurance institutions, insurance intermediary firms, etc., easing the restrictions on the access of foreign investors to sectors such as accounting, auditing, architecture and rating services, and promoting the orderly opening of sectors such as telecommunications, internet, culture, education and transport (Article 2).

In manufacturing, focus is placed on abolishing the restrictions on the access of foreign investors to sectors such as rail transport equipment manufacturing, motorcycle manufacturing, ethanol fuel production, and fat and oil processing. In mining, the restrictions on the access of foreign investors to non-conventional oil and gas sectors, such as oil shale, oil sands and shale gas as well as the mining resource sector are relaxed. Foreign cooperative projects in the oil and natural gas sectors shall henceforth be subject to the record filing system in place of the check and approval system (Article 3).

The participation in accordance with laws and regulations by foreign investors in infrastructure construction in the form of concessions is supported, including in energy, transportation, water resources, environmental protection, and urban infrastructure and utilities. Relevant supporting policies shall apply equally to the construction and operation of foreign-invested concession projects (Article 5).

The business license and qualification applications of foreign-invested enterprises shall be reviewed impartially. The reviews for Chinese-invested and foreign-invested enterprises shall be conducted based on uniform criteria and by the same deadlines (Article 9).

The expansion of financing channels for foreign-invested enterprises is supported, carrying out financing by listing on a main board, small and medium enterprise board, ChiNext or the New Third Board, as well as by offering enterprise bonds, corporate bonds or convertible bonds and applying non-financial enterprise debt financing instruments (Article 13).

The minimum registered capital requirement for companies invested in by foreign investors is abolished, and a registered capital system uniform for both Chinese-invested and foreign-invested enterprises shall be implemented (Article 14).

Multinational corporations are encouraged to establish regional headquarters, procurement centers and settlement centers in China. They are allowed to centrally manage their renminbi and foreign currency funds (Article 18).

clp reference:2300/17.01.12 issued:2017-01-12

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