CHINA FOREIGN INVESTMENTS POLICIES AND PREFERENCES
Regional Policies
China's policy of opening to the outside world uses
a holistic strategy of proceeding in an orderly and
step-by-step way from coastal region to inland cities.
Currently there are varieties of special economic areas:
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Special Economic Zones: Shenzhen, Zhuhai, Xianmen,
Shantou and New Area of Pudong in Shanghai |
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14 coastal port cities: Shanghai, Tianjin, Dalian,
Qinhuangdao, Yantai (including Weihai), Qingdao, Lianyungang,
Nantong, Ningbo, Wenzhou, Fuzhou, Guangzhou, Zhanjiang,
and Beihai |
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49 state economic and technological development
areas (see appendix) |
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52 state high and new technological industrial development areas |
In 1999, the Chinese government carried the policy of
central and western regions exploitation into execution.
Investment including that from abroad is encouraged
to put into inland China in the central and western
region. Policies and measures relevant to the foreign
investment are:
(1) Projects included in the Catalogue of Advantageous
Sectors for Foreign Investment in Central and Western
Regions shall enjoy the same policies as encouraged
projects.
(2) For the foreign invested projects in infrastructures
or advantageous sectors in the west, restrictions on
the proportion of foreign investment shall be appropriately
eased.
(3) Foreign investment is encouraged to put into the
west region in the infrastructure construction and resources
development of agriculture, irrigation works, ecology,
transportation, municipal works, environmental protection,
Mining, Tourism, etc. and the establishment of technical
research and development centers.
(4) The opening in the service and trade sectors in
the west region shall be furthered: the pilot projects
of foreign investment in banks, retailing enterprises
and foreign trade shall be expanded to municipalities
and capital cities of provinces and autonomous regions;
foreign invested banks shall gradually be permitted
to run RMB business; foreign investors are permitted
to, in accordance with relevant regulations, enter telecommunications,
insurance, tourism, Sino-foreign public accountant services,
lawyer services, engineering design companies, railway
and highway transportation enterprises, municipal engineering
enterprises and other industries admitted to open; some
industries are permitted to open in the west first for
a trial.
(5) Expanding channel of foreign investment: BOT and
TOT trials are permitted in the west region for foreign
investors; foreign invested projects are permitted to
gather capital including that of RMB; qualified foreign
invested enterprises in the west region shall be supported
to get listed in stock markets home and abroad; Enterprises
belonging to State encouraged and permitted industries
in the west region shall be supported to absorb foreign
invest through transferring of operation right, selling
of share holdings, mergering and reorganizing, etc.;
actively explore the methods of Sino-foreign joint venture
fund and risk investment fund in absorbing foreign investment.
(6) Foreign-invested enterprises of eastern regions
are encourage to come to the western China and reinvest,
and those projects with more than 25% foreign investment
could been regarded as foreign-invested enterprise and
enjoy equal treatment;
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