10 July 2018
State Council Takes Action to Boost China’s Future Foreign Investment Levels
In a bid to maximise future foreign investment levels, the State Council has approved 23 new facilitative measures. Among the key elements of this revised strategy are the following:
Special Administrative Measures
Following the 1 July publication of the new regulations relating to foreign investment – both within the designated Pilot Free Trade Zones and on a national basis – priority will be given to according pre-establishment national treatment to all overseas-backed projects in line with the stipulations of the revised 2018 foreign investment negative list.
The Financial Sector
Restrictions relating to those foreign financial institutions looking to operate on the mainland will be eased, while those regulations currently governing Qualified Foreign Institutional Investors (QFII) and RMB Qualified Foreign Institutional Investors (RQFII) are to be revised with a view to attracting a higher level of long-term overseas-derived funding into the domestic capital market
The Services Sector
Restrictions to foreign investment access will be entirely withdrawn or eased in a number of areas, such as transportation, commercial logistics and certain specialised service sectors. Within the Pilot Free Trade Zones, action will be taken to establish the viability of opening several other sectors up to foreign investment, including telecommunications, cultural enterprises and tourism
Agriculture, Mining and Manufacturing
Restrictions to foreign investment access will be entirely withdrawn or eased in the agricultural sector, as well as with regard to the mining of coal and certain non-metallic minerals. Similar liberalisations will also apply to manufacturers of automobiles, ships or aircraft
These changes were outlined in the Circular on Several Measures Concerning the Active and Effective Use of Foreign Investment in Order to Boost High-quality Economic Growth, as issued following the conclusion of the State Council’s 30 May executive meeting.
For further details (in Chinese), please visit the following link: