Following the big change where registration was replaced by filing for establishment applications of companies excluded in the Negative List, China State Council further approves adjustment of the special access management measures for qualification requirements, share ratio restrictions and business scope restrictions in some industries in the Shanghai Pilot Trade Zone to allow foreign invested enterprises engaging in some business activities that were previously restricted or prohibited.
As people may know, foreign invested companies engaging in some industries such as international maritime transportation, aviation, automobile and salt in China are strictly monitored by Chinese authorities in terms of requiring qualification verification and business scope licensing. This has greatly restricted and prohibited foreign companies from engaging in these business activities. In order to further expand the Shanghai Pilot Free Trade Zone to attract more foreign investment, China State Council promulgated “Decision of the State Council on Temporarily Adjusting the Special Access Management Measures Prescribed by Relevant Administrative Regulations and the Department Rules Approved by the State Council for Implementation in the China (Shanghai) Pilot Free Trade Zone” on September 4th, 2014 to temporarily adjust the special access management measures including administrative approval, qualification requirements, share ratio restrictions and business scope restrictions set forth in several administrative regulations. These regulations include the following: Regulations of the People’s Republic of China on International Maritime Transportation, the Regulations of the People’s Republic of China Concerning Accreditation and Recognition, the Administration Regulations on Salt Industry, the Catalogue of Industries for Guiding Foreign Investment, the Policy on Development of Automobile Industry and the Provisions on Foreign Investment in Civil Aviation Sector in the Shanghai Pilot Free Trade Zone. (The enclosed chart summarizes the detailed changes. This adjustment will greatly encourage foreign investment in industries such as maritime and train transportation, accreditation and recognition, automobile, salt and civil aviation. It should be noted that these adjusted measures may be further amended according to the actual implementations in the Zone.
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