On Thursday 7 November, at the margins of the 2nd China International Import Expo, the State Council released the Opinions on Further Improving Work for the Utilisation of Foreign Capital (Guo Fa [2019] No. 23). The document includes 20 policy measures, under 4 areas, that relevant central and local government departments are requested to implement over the next months. These include:
- Deepen opening up:
- Further shorten of the foreign investment negative lists, both national and in free trade zones;
- Relax or abolish restrictions on foreign investment in the financial sector, e.g. abolish limitations on the scope of business of foreign banks, securities companies, fund management companies; reducing quantity-related market entry conditions for foreign investors in the banking and insurance industry; abolishing total asset-related requirements for foreign investors to establish banks; etc.
- Ensure equal treatment for manufacturers of new energy vehicles;
- Optimise the environment for fair competition, including timely address fair competition issues, unify the scope of contracting of domestic and foreign construction companies, improve the business environment for foreign investors to apply to internet service business, etc.
- Increase investment promotion:
- Optimise S&T-related services to foreign enterprises, including training and coaching for application to HNTE status (MOST, MOF, SAT, local S&T government departments);
- Increase the quality of free trade zones, by delegating to them more authority to approve foreign investment projects;
- Increase support to local authorities, including local technology and economic development zones, to attract foreign investors.
- Deepen the reforms for investment facilitation:
- Accelerate the formulation of specific measures to support foreign-invested enterprises in cross-border utilisation of the Renminbi; and promoting the reform of the registration system for enterprises to issue foreign debt bonds;
- Ensure relaxed visa application conditions for urgently needed talents and entrepreneurs (incl. age, degree title, work experience, etc.). Foreign students graduated in China can apply for two-year residence permits for entrepreneurship purposes; foreigners can apply to five-year residence permit if they have already had two consecutive one-year residence permits.
- Protect the legitimate rights and interests of foreign investors:
- Comprehensively implement the Foreign Investment Law and its implementing rules;
- All regions should establish and improve complaint-acceptance bodies for foreign-invested enterprises, including standardise handling procedures and increase efficiency;
- Increase the transparency and predictability of how administrative documents involving foreign investment are formulated;
- Further improve IP protection services and environment for foreign investors, including e.g. reducing litigation burdens for foreign parties, optimising the requirements for formal proofs and elements in IP cases involving foreign-invested enterprises, making more active use of punitive damages, increasing penalties against bad faith and repeated infringements, etc.;
- Ensure equal treatment to support the participation of foreign-invested enterprises in standards-formulation, especially in the fields of medical equipment, food and drugs, ICT products;
- Local governments and other government bodies must ensure equal participation in government procurement according to the law, thus not discriminating the supplier based on ownership form and structure, organisational form, brand of product and services, or country of origin of the supplier.
External link:
http://www.gov.cn/zhengce/content/2019-11/07/content_5449754.htm