China will further relax restrictions on foreign investment access in many fields
【2021-10-22 Source: Xinhua News Agency】
- Xinhua News Agency, Beijing, October 22. The Ministry of Commerce issued the “14th Five-Year Plan” development plan for the utilization of foreign capital on the 22nd. According to the plan, during the “14th Five-Year Plan” period, my country will further relax restrictions on foreign investment access in the fields of law, transportation, finance, information transmission, education, and medical care, and promote a higher level of opening to the outside world.
- The plan is clear. During the “14th Five-Year Plan” period, my country’s utilization of foreign capital will rank among the top in the world. The structure of foreign capital utilization will continue to be optimized, and its linkage with foreign investment, foreign trade, and consumption promotion will be further strengthened. According to the expected quantitative indicators listed in the plan, by 2025, my country will ac cumulatively use 700 billion U.S. dollars of foreign capital, and high-tech industries will absorb 30% of foreign capital.
- A prominent feature of the plan is to promote a higher level of opening up. In terms of reducing the negative list of foreign investment access, the plan proposes to continue to promote the expansion of manufacturing, service, and agriculture, gradually relax restrictions on foreign investment equity, and allow foreign holdings or sole proprietorship in more fields.
- In terms of relaxing the entry barriers for key areas, the plan proposes to promote the opening of related businesses in the fields of telecommunications, internet, education, culture, and medical care in an orderly manner. Promote relaxation of foreign investment laws, transportation and other industry business scope, personnel qualifications and other requirements. We will steadily promote the opening up of banking, securities, insurance, funds, futures and other financial sectors. Steadily deepen the opening up of the capital market and relax the conditions for high-quality foreign investors to make strategic investments in listed companies.
- In terms of continuing to reduce market access restrictions, it is clear that the negative list for market access will be further reduced, and the warehousing and postal industry, information transmission, software and information technology service industry, leasing and business service industry, scientific research and technical service industry, and culture and sports will be reduced. Entry licensing matters in fields such as entertainment and entertainment industries, lowering market entry barriers, etc.
- In addition, the plan also makes arrangements for optimizing the use of foreign investment structure, strengthening the functions of open platforms, improving the service level of foreign investment promotion, improving the foreign investment management system, optimizing the foreign investment environment, and promoting the liberalization and facilitation of international investment.
- According to data from the Ministry of Commerce, during the 13th Five-Year Plan period, in terms of U.S. dollars, my country’s newly established foreign-funded enterprises and actual use of foreign capital increased by 61.8% and 10.4% respectively compared with the 12th Five-Year Plan period. From 6.7% in the year to 15% in 2020.
Remarks: For extensive collection of related information for reference.