January 22, 2014

Pilot Free Trade Area. The temporarily adjusted administrative regulations and documents cover two main areas — reforming the administration of foreign investment and expanding the liberalization of the service industry.

Reform of foreign investment administration: The administrative examinations and approvals required under the Detailed Rules for the Implementation of the P.R.C. Foreign-Funded Enterprises Law and the Regulations for the Implementation of the P.R.C. Law on Chinese-Foreign Joint Ventures will be temporarily adjusted with respect to foreign investment, except for investments that are subject to special administrative measures imposed by the national government.

Expanding the liberalization of the service industry: Administrative examinations and approvals and special administrative measures such as qualifications, shareholding restrictions and business scope limitations that are set forth under the P.R.C. Regulations on Vessel Registration, the P.R.C. Regulations on Maritime Transportation, the Administrative Regulations for the Credit Information Industry, and the Administrative Regulations on Performance for Business will be temporarily adjusted.

The adjustment includes a total of 32 detailed regulations. For fields open to the public, including most of the fields not named in the negative list, administrative examination and approval will be suspended and replaced with a file management system. After suspending the implementation of administrative regulations and State Council documents, the FTA will be subject to certain legal gaps. Consequently, the State Council requires the authorities and the Shanghai Municipal Government to regulate the situation in accordance with statutes, regulations and State Council documents, to adjust the regulations and documents formulated by the authorities and the municipal government in a timely manner, and to establish administrative systems that meet the requirements of the Pilot Free Trade Area.

(news source: Securities Times)