The State Council has recently issued the Opinions on Further Improving the Use of Foreign Capital (the "Opinions").The Opinions outline 20 policy measures in four aspects, covering
- Deeping Opening-up
The negative lists for foreign investment access in nationwide places and in pilot free trade zones will be further shortened, and restrictions not specified on the negative lists will be all sorted out and lifted.
All restrictions on the business scope for foreign banks, securities firms and fund management companies will be lifted, while an equal treatment in market access to new energy vehicles produced by domestic and foreign automakers will be ensured by refined policies.
Further, the scope of shareholders allowed to invest in foreign banks and foreign insurance institutions will be widened; the requirement that the sole Chinese shareholder or the major shareholder of a Sino-foreign joint venture bank must be a financial institution will be abolished, and foreign insurance conglomerates will be allowed to invest to establish insurance institutions. The restriction that the foreign shareholding in securities companies, securities investment fund management companies, futures companies, and life insurance companies cannot exceed 51%, is about to be scrapped in 2020.
Efforts will be made to accelerate the opening-up pace in the financial sector and optimize the policies toward foreign investment in automobiles, in a bid to create a level playing field.
- Stepping Up Efforts to Promote Investment
- Deepening the Reform on Investment Facilitation, and
The government will lower the cost of cross-border capital use and make it easier for foreigners to work in China. Foreign businesses will be encouraged to use their capital for equity investment in China.
- Protecting Lawful Rights and Interests of Foreign Investors
The government will strengthen the protection of legitimate interests of foreign investors, fully implementing the Foreign Investment Law.
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