The State Council has recently issued the Circular on Several Measures to Support the Deepening of Reform and Innovation in Pilot Free Trade Zones (the "Circular").
The Circular outlines 53 work measures to create a more favorable investment environment, especially on forming a sound environment for investments, enhancing trade and investment facilitation, prompting financial innovations to serve the real economy, carrying out trials first in the domain of human resources. Shanghai Dongjin finds the below points which shall be taken care of.
- All pilot zones should relax the control over the proportion of overseas technicians in foreign-invested construction engineering design companies.
- The approval for the construction related licenses is to be delegated to the FTZs.
- The approval on the licenses for foreign-invested construction companies (including design, construction, supervision, inspection, cost consultation) is to be delegated to the FTZs.
- When a wholly foreign-owned construction enterprise in the FTZs undertakes a construction project between China and foreign countries in its own province (city), it shall not be restricted by the proportion of foreign investment.
- For foreign invested engineering design enterprises (except for engineering investigation) serving the province (city) in the FTZs, the requirements for the investors’ engineering design performance when applying for qualification for the first time shall be cancelled.
- The registration for representative office will be delegated to the FTZs.
- The application for the trademark registration and trademark pledge registration can be accepted at the FTZs level.
- To set up the port for the first imported drugs and biological products in Chongqing FTZs.
- Administrative approvals concerning branches of insurance companies will be further simplified, and an information sharing platform for the insurance demand of companies in the pilot FTZs will be created.
- To allow financial institutions in the FTZs to carry out renminbi derivative products and other businesses for overseas institutions with the preconditions of complying with laws and regulations and keeping risks within control.
- To encourage and support banking financial institutions in the FTZs to grant RMB loans to overseas institutions and overseas projects on the basis of real needs and good credit principles, so as to meet the financing needs of overseas investment, project construction, project contracting and export of large-scale equipment of "going abroad" enterprises.
- To support qualified individuals in the FTZs to invest in overseas securities.
- To support the securitization of intellectual property rights in FTZs where conditions exist.
- To delegate the approval for setting up the foreign invested or joint venture human resource companies to FTZ and then to record its qualification to the municipal HR departments.
- The qualification for the Hongkong and Macau talents in the special areas such as the financial, construction, planning, patents may be admitted in the Guangdong FTZ after it has the related government recorded.
We will keep you informed if there are any detailed regulations.
If you have any question, please contact me.
Mr. Mike Chang
TEL: 0086-21-68868321 / FAX: 0086-21-68868021