Guangdong Province, Several Policy Measures for Further Expanding Opening up to and Actively Utilizing Foreign Investment

广东省进一步扩大对外开放积极利用外资若干政策措施

April 18, 2018 | BY

Susan Mok

Guangdong has broadened the business scope for Hong Kong/Macao law firms.

Clp Reference: 2100/17.12.01 Promulgated: 2017-12-01

Issued: December 1 2017

Main contents: The expansion of the scope of legal matters that associations of Hong Kong/Macao and mainland law firms may accept and handle will be promoted.

In the manufacturing sector, the limit on the foreign shareholding percentage in specialized vehicle and alternative energy vehicle manufacturing is relaxed. In the service industries, the restriction on the foreign shareholding percentage in ship design, feeder and general purpose aircraft maintenance and repair, human resource service firms, international marine transport companies, rail passenger transport companies and gasoline station construction and operation is abolished, foreign investors are permitted to invest in internet access service business premises and call centers, and the restriction on the scope of business of wholly foreign-owned performance brokerages is relaxed. In the financial sector, the restrictions on the foreign shareholding percentage and the scope of business of foreign-invested banks, securities companies, securities investment fund management companies, futures companies and life insurance companies are relaxed (Article 1).

Between 2017 and 2022, with respect to new projects (excepting real estate, finance and quasi-finance projects) established in Guangdong with an annual actual foreign fund amount (excluding foreign shareholder loans) exceeding US$50 million, capital increase projects exceeding US$30 million and headquarters and regional headquarters of multinational corporations exceeding US$10 million, the provincial finance department will award them a reward of not less than 2% of their actual foreign funding amount for the year in question, up to a maximum of Rmb100 million. Manufacturing projects with an annual actual foreign fund amount exceeding US$100 million newly established (or established by means of a capital increase) in Guangdong by Fortune 500 corporations and global industry leading enterprises, as well as newly established IAB (new generation of information technology, artificial intelligence and bio-pharmaceuticals) and NEM (new energy and new materials) manufacturing projects with an annual foreign fund amount of not less than US$30 million may be accorded key support on a “one project, one negotiation” basis. When the provincial-level fiscal year contribution by the headquarters or regional headquarters of a wholly foreign-owned multinational corporation exceeds Rmb100 million for the first time, the provincial finance department will award it a one-time reward equivalent to 30% of its provincial-level fiscal contribution for the year in question, up to a maximum of Rmb100 million (Article 2).

clp reference:2100/17.12.01 issued:2017-12-01

This premium content is reserved for
China Law & Practice Subscribers.

  • 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
For enterprise-wide or corporate enquiries, please contact our experienced Sales Professionals at +44 (0)203 868 7546 or [email protected]