With China’s continuous expansion of opening up to the outside world, more and more foreign investors are paying attention to investment opportunities in China. The Chinese government has introduced a series of policies to regulate foreign investment access, and formulated the Special Administrative Measures for Foreign Investment Access (Negative List) to clarify the fields open to foreign investment. Grasping policies related to foreign investment enterprises has become particularly important.
Foreign investors can invest in occupational education
According to the Special Administrative Measures for Foreign Investment Access (Negative List) (2020 Version), the restrictions on the proportion of foreign shares of securities companies, securities investment fund management companies, futures companies and life insurance companies are cancelled. The provision that the construction and operation of water supply and drainage pipe networks in cities with more than 500,000 people must be controlled by the Chinese side is also cancelled.
Natural persons can invest in foreign-invested enterprises
The Foreign Investment Law responds positively to market demand by clarifying the status of Chinese natural persons as qualified subjects for Chinese investors. This creates favorable conditions for fully unleashing the enthusiasm of private investment and promoting market vitality.
Changes in enterprise types
After the implementation of the new law, in order to better reflect the principle of consistency between domestic and foreign investment, the organizational forms of foreign-invested enterprises will apply the provisions of the Company Law and the Partnership Enterprise Law. Enterprise types will only distinguish between limited liability companies, joint stock limited companies and partnerships.
Information reporting system for establishment of foreign enterprises
On the basis of the filing system, the new regulations further simplify enterprise procedures and emphasize the establishment of a foreign investment information reporting system. New changes to foreign-invested enterprises no longer need approval and filing through commerce departments.
The negative list for foreign investment access is constantly being streamlined, allowing more industries to open up to foreign capital, which can attract foreign investors.