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HOME > Global Network > Shanghai > Publications > Professional Articles > China FDI Review: Regulatory Updates of FDI in Modern Service

China FDI Review: Regulatory Updates of FDI in Modern Service

 2024-08-22

China’s modern service sector has maintained a high speed of development with a more diversified trending on many aspects. Recent news report of an official press states that China will erase items on the negative list for FDI in industrial sector and unstring more on FDI in modern service sectors of telecommunication, internet, education, culture, medicine and healthcare. In this regard, new policies have been introduced to encourage foreign investment in emerging modern service such as in telecommunication area (e.g. IDC, CDN, ISP, VPN, etc.), facilitation of cross-border data flows, medicine and healthcare (e.g. stem cell clinical trials, foreign clinics, and gene diagnosis and treatment technologies), culture and entertainment (e.g. establishment of commercial performance venues, commercial performance intermediaries, entertainment venues, and participation of foreign art performance groups or individuals in commercial performances). This article presents you the regulatory updates over foreign direct investment in China’s modern service sector from the perspective of recent developments of Chinese laws, regulations, and free trade zone (“FTZ”) policies.


I. Regulatory Framework of Foreign Investment in the Modern Service Sector


Since the implementation of the Foreign Investment Law (the “Foreign Investment Law”) on 1 January 2020, the regulatory framework has become Foreign Investment Law and the Implementation Regulations for the Foreign Investment Law (the “Implementation Regulations of the Investment Law”) together with the management system of “pre-establishment national treatment and a negative list approach” for foreign investment. Foreign-invested enterprises are subject to the same regulations as domestic enterprises, including the Company Law (the “Company Law”) and the Partnership Enterprise Law (the “Partnership Enterprise Law”). As the five-year transition period under the Foreign Investment Law will soon expire on 1 January 2025, the previously well-known “Three Foreign Investment Laws” namely, “the Law on Wholly Foreign-Owned Enterprises", "the Law on Sino-Foreign Equity Joint Ventures", and "the Law on Sino-Foreign Cooperative Joint Ventures" will end their mission. 


Being a general approach adopted by China for its opening-up strategy, experiential pilots and FTZs apply less regulations than the nationwide laws for FDI entry in the modern service sector, including adjustments to relevant regulations and the Special Administrative Measures (Negative List) for Foreign Investment Access (2021) (the “Negative List”). The benefited sectors are finance, healthcare, tourism, and telecommunications within the modern service sector. Foreign investors are permitted to use proper forms to invest, establish institutions or engage in relevant businesses.


II. Opening-up Policies in Pilot Cities for Modern Service Sector


On 21 May 2015, Beijing became the first city in China to pilot the expansion of the service sector’s opening-up. On 8 September 2020, based on the successful experience of Beijing’s three-year pilot program, the State Council further upgrades Beijing’s service sector opening-up from a “pilot” to a “demonstration zone” (“Beijing Demonstration Zone”). Following two rounds of expansion, Tianjin, Shanghai, Hainan, Chongqing, Shenyang, Nanjing, Hangzhou, Wuhan, Guangzhou, and Chengdu have all been approved to carry out similar pilot programs. The areas of opening-up include FDI access in certain telecommunications network services, access to operational educational institutions, conditional opening of financial service, and access to specific areas of medical and tourism service.


Since 3 July 2024, Beijing has adopted more measures which are pro-foreign investors in its National Comprehensive Demonstration Zone, such as facilitating the qualification application process for foreign firms in the telecommunications sector (e.g. IDC, CDN, ISP), facilitating cross-border data flows and further opening-up in medication, including clinical trials for stem cells, foreign doctors’ clinics, and gene diagnosis and treatment technologies.


Since 11 July 2024, Shenyang, Nanjing, Hangzhou, Wuhan, Guangzhou, and Chengdu have been exempted from complying with the Negative List, “Interim Regulations on Registration Administration of Private Non-profit Organisations”, “Regulations on Travel Agencies”, “Regulations on the Administration of Entertainment Venues”, and “Regulations on the Administration of Commercial Performances”. These adjustments aim to form industrial access for these six cities which are major consumer markets in China. The specific adjustments include regulations related to foreign investment in non-profit medical institutions, non-profit elderly care institutions, outbound tourism, domestic Internet Virtual Private Network (VPN), app store information, internet access provided to users, social survey, operation of entertainment venues, operation of performance venues, performance brokerage agencies, and license for foreign or Hong Kong, Macao, and Taiwan participation in commercial performances. The specific adjustments are shown as follows:


No.

Regulations related to    administrative laws and departmental rules approved by the State Council

Adjustment of    implementation


1

Article   2 of Interim Regulations on Registration Administration of Private   Non-profit Organisations

For   the purpose of these Regulations, private non-profit organisations   refer to the social organizations established by enterprises, public   institutions, social groups, other social forces and individual citizens with   non-state-owned assets to engage in non-profit social service activities.

Foreign   investors are allowed to establish non-profit-making medical institutions in   Shenyang, Wuhan, Guangzhou and Chengdu in the form of joint Chinese and   foreign dominations in accordance with the relevant regulations to provide   basic medical and healthcare services.


2


Foreign   investors are allowed to donate funds to organise non-profit elderly care   institutions in Hangzhou, Guangzhou and Chengdu, and those that meet the   conditions can be registered as private non-profit organizations in   accordance with the law.


3

Article   23 of Regulations on Travel Agencies

Foreign-invested   travel agencies shall not engage in Chinese mainland residential travel   business abroad and Chinese mainland residential travel business in Hong   Kong, Macao and Taiwan, but except otherwise the decisions by the State   Council or free trade agreements and the Mainland and Hong Kong and Macao   Closer Economic Partnership Arrangements signed by China.

Foreign   investors are allowed to set up foreign-invested travel agencies in Shenyang,   Nanjing, Guangzhou and Chengdu that meet the relevant conditions to engage in   outbound travel business other than that of Taiwan.


4

Special   Administrative Measures (Negative List) for Foreign Investment Access   (Edition 2021)

14.   Telecommunications companies: limited to telecommunications services opened   up pursuant to China's WTO commitments, proportion of foreign equity in   value-added telecommunications services (except for e-commerce, domestic   multi-party communications, store-and-forward, call centres) shall not exceed   50%, and basic telecommunications services shall be controlled by the Chinese   party.

Open   the domestic Internet virtual private network business to foreign investment   in Shenyang, Nanjing, Hangzhou, Guangzhou and Chengdu (with foreign equity   ratio not exceeding 50%) and attract overseas telecommunication carriers to   provide domestic Internet virtual private network services for   foreign-invested enterprises in Shenyang, Nanjing, Hangzhou, Guangzhou and   Chengdu through the setting up of joint-venture companies.


5

Cancel   restrictions on foreign equity ratio in value-added telecommunication   businesses such as information service business (application shops only,   excluding areas where foreign investment is prohibited) and Internet access   service business (Internet access service for subscribers only) in Shenyang,   Nanjing, Hangzhou, Guangzhou and Chengdu.


6

Article   9 of the Regulations on the Administration of Entertainment Venues

An   entertainment venue that intends to engage in business operations shall file   an application with the local competent department of culture under the   peoples government at the county level. A foreign-invested   entertainment venue that intends to engage in business operations shall file   an application with the local competent department of culture under the   peoples government of the province, autonomous region or centrally-administrated   municipality.

Delegate   the authority to approve applications for engaging in the operation of   entertainment venues to the competent cultural departments of the municipal   governments of Nanjing, Hangzhou, Wuhan, Guangzhou and Chengdu for the   establishment of entertainment establishments invested by foreign investors,   investors from Hong Kong, Macao and Taiwan.


7

Article   10 of the Regulations for the Administration of Commercial Performances

Foreign   investors may set up performance brokerage agencies or performance premise   operators within the territory of China but shall not set up any cultural and   artistic performance organization.

Where   a foreign-funded performance brokerage agency intends to engage in commercial   performance activities or a foreign-funded performance premise operator   intends to engage in performance premise activities, it shall file an   application with the cultural administrative department of the State Council.   The said department shall make a decision on the application within 20 days   from the receipt of the application. Where an approval is granted, a   commercial performance permit shall be issued; if the application is   rejected, the applicant shall be notified in writing, with the reasons   stated.

Article   11

Investors   from the Hong Kong Special Administrative Region and the Macau Special   Administrative Region may invest in the mainland to establish performance   brokerage agencies, performance premise operators and cultural and artistic   performance organizations held by domestic parties.

Investors   from Taiwan region may invest in the mainland to establish performance   brokerage agencies or performance premise operators, but shall not establish   any cultural and artistic performance organization in the mainland.

Where   a performance brokerage agency or cultural and artistic performance   organization established under this Article intends to engage in commercial   performance activities or a performance premise operator established under   this Article intends to engage in performance premise activities, it shall   file an application with the cultural administrative department of the peoples   government of a province, autonomous region or centrally-administered   municipality. The said department shall make a decision within 20 days from   the receipt of the application; if an approval is granted, a commercial   performance permit shall be issued; in case of rejection, the applicant shall   be notified in writing, with the reasons stated.

Delegate   the authority to approve applications for engaging in the operation of   commercial performance activities, performance brokerage agency or cultural   and artistic performance organization to the competent cultural departments   of the municipal governments of Nanjing, Hangzhou, Wuhan, Guangzhou and   Chengdu for the establishment of entertainment establishments invested by   foreign investors, investors from Hong Kong, Macao and Taiwan.


8

Article   15 of the Regulations for the Administration of Commercial Performances

Where   a commercial performance to be participated by foreign culture and arts   performing groups or individuals is to be held, the performance hosting   entity shall submit an application to the culture administrative department   of the province, autonomous region or centrally-administrated municipality at   where the performance shall be hosted.

 Where a commercial performance to be   participated by the culture and arts performing groups and individuals from   the Hong Kong Special Administrative Region or the Macau Special   Administrative Region is hosted, the performance hosting entity shall submit   an application to the culture administrative department of the province,   autonomous region or centrally-administered municipality at where the   performance shall be hosted; where a commercial performance to be participated   by the artistic performing groups and individuals from the Taiwan Region is   hosted, the hosting entity of the performance shall submit an application to   both the culture administrative department of the State Council and the   approving authority as stipulated by the relevant department of the State   Council.

The   culture administrative department of the State Council or the culture   administrative department of a province, autonomous region or centrally-administrated   municipality shall make a decision within 20 days from the receipt of the   application. Approving documents shall be issued if the provisions in Article   25 of these Regulations are complied with; where the provisions in Article 25   of these Regulations are not complied with, no approval shall be given, and a   written notice explaining the reason shall be served to the applicant.

Delegate   the authority to approve applications for holding commercial performances to   the competent cultural departments of the municipal governments of Nanjing,   Hangzhou, Wuhan, Guangzhou and Chengdu for the establishment of entertainment   establishments invested by foreign investors, investors from Hong Kong, Macao   and Taiwan.


9

Special   Administrative Measures (Negative List) for Foreign Investment Access   (Edition 2021)

It   is prohibited to invest in social surveys.

Foreign   investment in social surveys is permitted in Guangzhou, with a Chinese   shareholding of no less than 67%, and the legal representative should have   Chinese nationality



III. Modern Service Policies in Pilot Zones


In addition to the aforementioned special provisions issued by the State Council, China’s twenty-one FTZs have adopted their own specific opening-up policies for certain modern service industries. Shenzhen, Hainan, and Beijing are particularly notable for their exemplary practices in the liberalization of the modern service sector.


A. Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone


Shenzhen Qianhai has dual pilot status as being both an FTZ and a Shenzhen-Hong Kong Modern Service Industry Cooperation Zone. Qianhai has various policies for attracting foreign investors into modern finance, legal service, information service, trade logistics, marine economy and digital economy. For further details, please refer to the table in below.


Industries

Specific    Measures

Deepening the Openness   and Innovation in Financial Services

(1)  Support   qualified Hong Kong, Macao, and foreign banks and insurance institutions in   establishing branches, wholly-owned, or joint venture financial institutions   in Qianhai, as well as eligible securities institutions in setting up   wholly-owned or joint venture financial institutions.

(2)  Encourage   Hong Kong financial institutions to establish R&D centers, data centers,   and operation centers in Qianhai, and pilot the cross-border flow of   financial data such as credit data between Shenzhen and Hong Kong.

(3)  Support   cooperation between mainland and Hong Kong insurance institutions in   conducting cross-border insurance business in areas such as pension   insurance, marine insurance, credit insurance, motor vehicle insurance, and   reinsurance, under the premise of legal compliance.

(4)  Permit   Hong Kong private banks and family wealth management institutions to   establish specialized institutions in Qianhai, and support qualified Hong   Kong asset management institutions in setting up joint venture wealth   management companies in Qianhai to legally carry out cross-border asset   management business.

(5)  Deepen   the Qianhai pilot program for Qualified Foreign Limited Partners (QFLP) and   Qualified Domestic Institutional Investor (QDIE) schemes, broadening   cross-border investment channels for residents.

(6)  Support   Qianhai-based fund companies in actively participating in the cross-listing   of Exchange Traded Funds (ETFs) and the mutual recognition of publicly   offered securities investment funds between the mainland and Hong Kong.

(7)  Support   qualified financial institutions in conducting cross-border securities   investment and other businesses, pilot cross-border digital RMB initiatives,   explore cross-border application scenarios, and build a Shenzhen-Hong Kong   digital finance platform. Also, support the Shenzhen Qianhai United Trading   Center in exploring the coordinated development of spot and futures trading.

Enhancing the Development   Capacity of the Convention and Logistics Service Industries

(1)  Developing   an International High-End Consumer Market: Establish the Qianhai   International Consumption Experience Zone and the Qianhai Port Goods Display   and Sales Center. Pilot convenient tax refund services for outbound   travelers, including implementing an instant   refund upon purchase policy for departure tax   refunds.

(2)  Developing   the Modern Fashion Industry: Attract world-class fashion brands and leading   enterprises and facilitate the aggregation of high-quality fashion resources   such as international designers and fashion media. Support the original   research and development of digital content and accelerate the growth of   sectors such as animation and gaming, short videos, and virtual   reality/augmented reality (VR/AR).

 

 

 

Accelerating the Development of the   Technology Service Industry

(1)  Develop   a Technology Service Industry Cluster: Establish a technology transfer center   in collaboration with Hong Kong to promote the development of technology   trade. Explore mutual recognition of testing and certification services   between Shenzhen and Hong Kong, advance Greater   Bay Area Certification,  and implement one   certification, one test, two places   policy. Support the establishment of branches by Hong Kong Cyberport and   other entities in Qianhai and create a linkage mechanism for incubating and   nurturing entrepreneurial projects. Encourage technology innovation companies   to set up headquarters and innovation platforms in both regions.

(2)  Explore   New Models such as Registration in the Zone,   Operations Overseas. Encourage enterprises and   research institutions to establish innovation platforms abroad.

(3)  Develop   a New Technology and Product Directory. Explore a classified regulatory model   and establish a management mechanism based on a positive   list + pre-filing approach. Simplify import and export   procedures for R&D equipment and samples (excluding special items).

 

 

 

Accelerate the   concentrated development of high-end shipping services

(1)  Collaborate   with Hong Kong to Build an International High-End Shipping Service Center.   Expand services in the shipping sector, including finance, legal services,   and brokerage. Encourage international shipping companies, international   organizations, and functional institutions to gather in the region.

(2)  Advance   the Construction of a Seafarer Public Service Platform, develop seafarer   training and professional assessment programs. Explore allowing qualified   Hong Kong seafarers to be employed on ships registered in Shenzhen.

(3)  Build   the Shenzhen National Oceanic Fisheries Base (Shenzhen International Tuna   Trading Center) with High Quality.

(4)  Support   qualified foreign seafarers to serve on ships registered in China   Qianhai”.

(5)  Support   Chinese-registered international vessels in China   Qianhai to operate coastal shipping routes under   applicable policies.

(6)  Pilot   the exemption from the key used electromechanical product import license for   old ships purchased from abroad or acquired through other legal means and   intended for international ship registration in the zone.

 

Vigorously develop   internationalized and specialized education

(1)  Innovate   Sino-Foreign Cooperative Education Models, explore joint approval by central   and municipal authorities, and support the establishment of Sino-foreign   cooperative education projects and institutions without legal person status.

(2)  Promote   the establishment of new schools for Hong Kong and Macao students and   high-end international schools in Qianhai, and actively recruit outstanding   foreign teachers.

(3)  Advance   the mutual recognition of vocational skill levels with Hong Kong and Macao.

 

 

 

Provide high-quality   health and wellness services

(1)  Support   qualified service providers from Hong Kong and Macao to establish medical   institutions in Qianhai through wholly-owned or joint venture models, and   encourage social capital to invest in high-end private hospitals and health   management institutions.

(2)  Support   designated medical institutions in using clinically urgent drugs that are   already listed in Hong Kong and Macao, as well as advanced medical devices   used in public hospitals in Hong Kong and Macao.

(3)  Support   qualified medical institutions in conducting research on cutting-edge medical   technologies such as tumor immunotherapy and stem cells according to   regulations.

(4)  Explore   research and application of medical rehabilitation robots for surgery,   nursing, diagnostics, and rehabilitation. Enhance cross-border collaboration   mechanisms in clinical treatment, disease control, and scientific research,   and promote cooperation with Hong Kong public hospitals in management systems   and medical services.

(5)  Explore   using “elderly medical vouchers” to subsidize Hong Kong residents for   accessing more medical services.

(6)  Expand   the number of designated medical institutions for cross-border referrals of   Hong Kong patients, optimize the customs clearance model for medical   transport vehicles, and explore establishing an unobstructed green channel   for emergency medical transport.

 

Promote the prosperous   development of culture, sports, and tourism

(1)  Encourage   domestic and international museums to collaborate on exhibitions, foster   international cultural and artistic event brands, and support cross-border   performances by arts troupes, performing arts schools, and institutions from   Hong Kong and Macao.

(2)  Cultivate   market-oriented and professional sports clubs, create a platform for sports   intellectual property and event resource transactions, accelerate the   construction of major sports facilities, and support hosting major domestic   and international sports events, such as the World Sailing Challenge Series   finals.

(3)  Support   the addition of international passenger transfer functions at Shekou Cruise   Terminal and promote complementary advantages, mutual customer sources, and   cooperative sharing between Shenzhen and Hong Kong international cruise   ports.


B. Hainan Free Trade Port (Hainan FTP)


Hainan FTP is aiming to its full operation of separate custom with the mainland by 2025. Their policies focus on technical service, education, medicine and healthcare, culture, sport and entertainment, retail shopping, cruise and yacht tourism etc. For further details, please refer to the table in below.


Industries

Specific    Measures

Technical Service

Support foreign   investment credit investigation companies and introduce high-quality market   research and consulting firms.

Education Industry

(1)  Support   Hainan FTP in introducing high-quality foreign educational resources. For   undergraduate and above Sino-foreign cooperative educational institutions, a   joint approval process by the Ministry and the province will be implemented,   with Hainan Province authorized to approve projects independently, which will   be filed with the Ministry of Education.

(2)  Authorization   for the establishment of Sino-foreign cooperative educational institutions at   the high school level will be granted to Hainan Province.

(3)  Support   eligible foreign enterprises or economic organizations in registering   operational training institutions in Hainan and introduce a number of   international (foreign) brand training institutions.

Medical Health Industry

(1)  Support   Hong Kong and Macao service providers in establishing wholly-owned medical   institutions, and support Taiwanese service providers in establishing   wholly-owned hospitals. Support foreign investment joint ventures in   establishing non-profit medical institutions to provide basic medical and   health services.

(2)  Relax   the access requirements for foreign donations to establish non-profit elderly   care institutions as private non-enterprise units.

Culture, Sport and Entertainment Industries

(1)  Encourage   foreign investment in the tourism industry, allowing participation in the   development and construction of commercial tourist attractions, and   investment in tourism products and facilities.

(2)  Support   joint ventures and cooperation between Chinese and foreign enterprises in the   cultural sector. Optimize the approval and management of commercial   performances, providing convenience for artistic performance groups or   individuals to participate in commercial performances in pilot areas.

Consumption Industry

(1)  Attract   global high-end fashion brands to establish a presence and encourage the   establishment of brand agency headquarters or regional headquarters.

(2)  Establish   centers for the release, customization, and display of high-end fashion   consumer goods such as gold jewelry and haute couture.

Cruise and Yacht Tourism Industry

(1)  Encourage   the registration of international cruise ships and develop inbound tourism   services for international cruises and foreign tourists.

(2)  Support   the opening of cruise routes around Hainan Island and international cruise   routes.

(3)  Relax   regulations on yacht tourism, simplify entry procedures, and explore the   implementation of a negative list management system for foreign yachts in   Hainans territorial waters.

 

 

 

 

 

 

 

Develop the Healthcare Industry (Boao Lecheng   International Medical Tourism Pilot Zone)

(1)  Precisely   connect with internationally renowned medical institutions and medical teams   to introduce and cultivate a number of advanced and market-leading medical   institutions.

(2)  Guide   foreign pharmaceutical companies to establish after-sales service centers in   the pilot zone.

(3)  Promote   the establishment of medical schools in partnership with world-renowned   medical schools.

(4)  Support   the establishment of specialized health and elderly insurance institutions   and remove foreign equity limits for health insurance and personal insurance   companies.

(5)  Implement   convenient entry and stay policies for foreign medical personnel, patients,   and their companions coming to the pilot zone for treatment.

(6)  Allow   patients from medical institutions in the pilot zone to take a reasonable   quantity of imported medicines for personal use out of the pilot zone, based   on patient registration and commitment.

(7)  Expand   the scope of imported health foods and medical devices, and under certain   conditions, allow the import of special medical foods that are listed abroad   but not yet listed domestically.

(8)  Coordinate   and study tariff and VAT exemption support policies for imported medicines   and medical devices in the pilot zone.

 

 

 

 

 

Cultural, Entertainment, and Publishing   Industry

(1)  Develop   international copyright trade, encouraging the export of copyrights for   industries with Chinese characteristics, such as film and television,   publishing, performing arts, animation, games, and software.

(2)  Explore   and study the possibility of allowing qualified wholly foreign-owned or   Sino-foreign joint venture or cooperative auction enterprises to engage in   antique auctions in the National South China Sea Cultural Heritage Industry   Park.

(3)  Allow   foreign investment to establish performance brokerage agencies in Hainan as a   pilot, and permit foreign investment to set up performance venue management   units in approved cultural tourism industry clusters in Hainan Province,   provided that performance programs comply with national laws and policies.

(4)  Allow   licensed tourism hotels to receive foreign television channels approved by   the state.

(5)  Implement   more open policies for the development of the exhibition industry, allowing   foreign organizations to host exhibitions in Hainan that comply with national   laws and regulations.

(6)  Align   with international exhibition activity standards, introduce top professional   exhibition companies, and hold high-level international trade fairs,   international brand expos, international film festivals, international   fashion weeks, international music festivals, and other large-scale   international exhibitions and world-class events.

(7)  Relax   entry restrictions for participating sports boats, aircraft, and motor   vehicles.

 

 

 

Tourism Industry

(1)  Allow   qualified Sino-foreign joint venture travel agencies registered in Hainan to   engage in outbound tourism business, except for Taiwan.

(2)  Achieve   consistency in qualifications, investment ratios, and business scope for   foreign investment in the tourism industry with domestic market entities.

(3)  Support   international large-scale tourism development and operation entities in   establishing a presence in Hainan through wholly-owned operations, joint   ventures, branch offices, mergers, and acquisitions.


C. Beijing National Comprehensive Demonstration Zone


As introduced above, Beijing National Demonstration Zone promotes more attractive policies for foreign investments especially in finance service, internet information service, education, health and medical, science and technology, culture and entertainment service, telecommunication. For further details, please refer to the table in below.


Industries

Specific    Measures

Financial Services

(1)  Support   social capital in Beijing to establish and lead the operation of RMB   international investment and loan funds and support foreign investment   institutions in participating in the qualified domestic limited partner   (QDLP) foreign investment pilot program.

(2)  Deepen   the implementation of the QDLP pilot program, gradually relaxing restrictions   on public market investment scope.

(3)  Support   wholly foreign-owned enterprises in applying to become private fund managers,   engage in equity investment and asset management businesses, and allow   qualified private securities investment fund management companies to apply to   transition to public fund management companies.

(4)  Prioritize   allowing multinational companies to establish wholly foreign-owned financial   companies in Beijing. Support eligible financial companies in Beijing to   obtain foreign exchange settlement and sales qualifications, and to conduct   buyer credit and extended industrial chain financial services, provided they   comply with laws and regulations and manage risks.

(5)  Support   more foreign banks in obtaining securities investment fund custody   qualifications and study the possibility of allowing foreign banks   established in Beijing to cautiously engage in government bond futures   trading. Allow qualified foreign banks to participate in domestic gold and   silver futures trading. Support large-scale and well-operated foreign legal   entity banks in Beijing in applying to participate in public market   transactions. Allow foreign banks to obtain Peoples   Bank of China gold import licenses and underwriting qualifications for   inter-bank bond markets.

(6)  Study   allowing newly established or restructured wholly foreign-owned banks or   Sino-foreign joint venture banks to apply for RMB business concurrently with   their opening applications.

(7)  Support   foreign investors in participating in green finance activities in accordance   with laws and regulations.

(8)  Allow   foreign banks to participate in import and export customs clearance, tax   payments, and customs guarantee businesses.

(9)  Expand   the pilot program for multinational companies   integrated onshore and offshore currency cash pooling, explore optimization   of quota management, enhance the effectiveness of cash pools, and promote the   development of integrated currency settlement account systems by banks in   Beijing that meet relevant operational requirements.

Internet Information   Services

(1)  Open   domestic internet virtual private network (VPN) services to foreign   investment, with foreign ownership not exceeding 50%.

(2)  Attract   overseas telecommunications operators to establish joint ventures to provide   domestic internet VPN services for foreign-invested enterprises in Beijing.

Education Services

(1)  Explore   introducing examination institutions and international textbooks for science   and engineering subjects.

(2)  Encourage   foreign investment in adult education and training institutions, support   foreign investment in establishing for-profit vocational skills training   institutions, and promote a number of international cooperation demonstration   projects in vocational education.

 

 

 

 

Health and Medical   Services

(1)  Support   the establishment of international research hospitals or research programs to   accelerate the incubation and commercialization of pharmaceutical research.

(2)  Allow   clinical trials for eligible drugs developed abroad to be conducted in   Beijing.

(3)  Relax   access requirements for private non-enterprise units established with foreign   donations to run non-profit elderly care institutions.

(4)  Focus   on pharmaceutical companies to expedite data compliance and export processes   for foreign pharmaceutical enterprises, and provide a green channel for   foreign pharmaceutical companies to apply for data export.

(5)  Support   qualified foreign and Hong Kong, Macao, and Taiwan doctors in opening clinics   in Beijing.

(6)  Support   eligible medical institutions in conducting clinical trials on stem cells and   other areas. Promote international cooperation in stem cell and gene   research. Facilitate the management of human genetic resources services for   Hong Kong, Macao, and Taiwan enterprises in Beijing.

(7)  In   line with national directives, select a number of qualified foreign-invested   enterprises in the Free Trade Pilot Zones for expanded opening-up pilot   explorations in the fields of gene diagnosis, treatment technology   development, and application.

Coordinated Development   of Beijing Capital International Airport and Beijing Daxing International   Airport

(1)  Encourage   Sino-foreign airlines to operate international routes and allow foreign   airlines to operate at both Beijing Capital International Airport and Beijing   Daxing International Airport.

(2)  Support   the Comprehensive Bonded Zone of Beijing Daxing International Airport in   investment promotion to attract foreign investment projects.

Science and Technology   Service

(1)  Allow   foreign investment in the aviation transportation sales agency industry.

(2)  Relax   qualification requirements for foreign-invested construction and engineering   design firms.

Culture and Entertainment   Service

(1)  Allow   foreign investment in audiovisual production businesses in specific areas.

(2)  Permit   foreign investment in establishing performance venues and entertainment   venues without investment ratio restrictions in designated areas with a   concentration of cultural and entertainment industries,

(3)  In   designated areas with a concentration of cultural and entertainment   industries, allow the establishment of wholly foreign-owned performance   brokerage agencies that can provide services nationwide.

 

 

Foreign Investment

(1)  Eliminate   the qualification requirements for foreign-invested enterprises to obtain   certification agency qualifications.

(2)  Relax   the application conditions for foreign-invested investment companies,   reducing the asset threshold for foreign investors to no less than $200   million in the year prior to application, and remove the requirement   concerning the number of foreign-invested enterprises already established in   China.

(3)  Encourage   foreign-invested enterprises to pursue green and low-carbon development,   actively participating in carbon peak and carbon neutrality strategies.   Relevant authorities can reward foreign-invested green and low-carbon   development projects according to applicable regulations.

(4)  Refine   support policies for headquarters enterprises, further optimizing the   relevant recognition standards. Encourage foreign-invested enterprises to   establish and apply for multinational regional headquarters in Beijing, with   qualified enterprises eligible for relevant support policies.

 

 

 

Telecommunication Service

(1)  Expand   the opening of the telecommunications industry. In the comprehensive pilot   demonstration zones and parks for service industry opening in Beijing, remove   foreign investment equity restrictions for value-added telecommunications   services such as storage and forwarding services, domestic multi-party   communication services, internet access services (limited to providing   internet access to users), and information services (limited to application   stores, excluding online publishing services). Research and explore further   expansion of value-added telecommunications business openness as appropriate.

(2)  In   the national comprehensive pilot demonstration zones for service industry   opening, remove foreign investment equity restrictions for internet data   centers (IDC), content distribution networks (CDN), internet access services   (ISP), online data processing and transaction processing, and information   services including information publishing platforms and delivery services   (excluding internet news information, online publishing, online audio-visual   services, and internet cultural operations). Actively promote foreign   enterprises to apply for qualifications.


IV.  Conclusion


With the improvement in the national consumer group, China is becoming a mega modern service market. Foreign firms possessing advanced international experience, networking, and mature management system will benefit more from exploring opportunities in China. The implementation of these experimental policies gives pathway to enter the China market in culture, tourism, healthcare,  telecommunications and other types of modern service. China may take further actions to promote measures for attracting investments to China. Foreign investors may need to keep path on the further opening-up policies in China.



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