On July 1, 2016, State Council’s Notice Guo Fa [2016] No. 41 published the decision to make 51 adjustments to investment rules in the Fujian, Guangdong, Shanghai and Tianjin pilot free trade zones, easing investment and allowing foreign investors to establish wholly foreign-owned enterprises to operate in certain areas that were restricted before.

The highlights:

  1. It relaxes administration, as business areas other than those on the negative list will not be subject to project verification processes, but to record filing processes instead.
  2. It allows foreign investment to operate through wholly foreign-owned enterprises in the following business areas:

Click here to view the table.

However, implementing these adjustments will require the amendment of administrative rules issued by other authorities, such as the Ministry of Commerce, the Ministry of Industry and Information Technology, the Ministry of Transport and the Civil Aviation Association of China.

Date of issue: July 1, 2016. Effective Date: July 1, 2016