China FDI Review: Regulatory Updates of FDI in Modern Service
2024-08-22China’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 people’s 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 people’s 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 people’s 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. (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 Hainan’s 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 People’s 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.