Shenzhen Looks to Woo Foreign Investment Through Improved Business Environment
22 May 2017
In a bid to woo overseas investment and attract the presence of more foreign companies, Shenzhen has initiated a series of moves designed to make the city more business friendly. These include streamlining administrative requirements and delegating decision-making to more accessible levels with regard to business licence approvals, operating standards, government procurement and finance channels. The ultimate aim is to reassure oversea investors that they will enjoy the same privileges as domestic businesses both before and after gaining market access.
Overall, three primary areas have been targetted for change:
- Firstly, moves are to be made to welcome overseas investment into previously prohibited sectors. Following the central government’s decision to ease restrictions on foreign investment in banking, securities companies, securities investment fund management companies, futures companies, insurance companies and insurance intermediaries, other sectors are also to be opened up. This will see overseas investment permitted into accounting and auditing businesses, architectural design and a number of other areas. The orderly liberalisation of a several other sectors, notably telecommunications, digital businesses, culture, education and transportation, is also to be prioritised.
- Foreign capital is also to be sought for the manufacturing sector in line with the Shenzhen Action Plan for Made in China 2025. In particular, overseas investment into the advanced manufacturing sector – including high-end manufacturing, smart manufacturing, and green manufacturing – is to be encouraged. This will see oversea-backed manufacturing enterprises entitled to the same treatment as domestic businesses with regard to investor qualifications, financial strength, senior management qualifications, government approval, investment scale, process technology, environmental protection, spatial layout and total volume control.
- The co-operation between Shenzhen and Hong Kong, in accordance with the CEPA framework, is also to be deepened. This will see Hong Kong service providers permitted to establish wholly-owned companies in Shenzhen to provide charter jet services, including the provision of flight crew, as well as the repair and maintenance of civilian aircraft. On the marine front, they will be permitted to undertake vessel repair and maintenance and act as shipping agents and ferry operators between the mainland, Hong Kong and Macau. Additionally, they will be entitled to run certain value-added telecommunications services, engage in the distribution of domestic films, organise film screenings, produce audio-visual products and act as a performance brokerage service.
For further information (in Chinese), please refer to the following website:
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