Beijing further loosens foreign capital on service industries

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​Beijing is opening up further to foreign investment in six areas of the service industry.

XinhuaUpdated: April 13, 2018

Beijing is opening up further to foreign investment in six areas of the service industry. Overseas enterprises are encouraged to obtain special permission and invest in key projects such as the city's infrastructure construction; imported medications that meet the city's requirements will be allowed for clinical trials in Beijing; and for-profit nursing homes for the elderly will begin welcoming foreign investment.

The Beijing municipal government recently released a document lifting prior restrictions in these industries. The document outlines the new measures Beijing is adopting to expand and enhance its service industry. According to the document, foreign capital will enjoy easier access to six areas of service industry: science & technology services, internet & information services, culture & education services, financial services, commerce & tourism services, and healthcare services.

In terms of business-oriented services, many previous restrictions are being lifted. Foreign companies will be allowed to invest in air transportation sales agencies. Foreign investors will have easier access to funding for construction projects, and the ratio requirement on foreign technical staff is abolished. The requirements for foreign capital will be lowered to attract more investment companies and recruitment agencies. Foreign banks, insurance companies, and securities joint ventures are encouraged to do business in Beijing.

In terms of consumer-oriented services, more areas are now open for foreign capital. Foreign enterprises will be allowed to invest in audio and video production in certain districts. Foreign companies will be allowed to operate performance art and entertainment businesses in certain districts with no restriction on investment proportion. The government supports foreign institutions and companies in China to open schools for foreign children. Pharmaceutical institutions are allowed to conduct clinical tests for foreign-developed medications that meet the city’s requirements. Foreign companies are also encouraged to run for-profit healthcare centers, community senior centers, and professional nursing homes for the elderly in Beijing.

The document states that Beijing aims to optimize the foreign capital structure to endorse the development of transnational corporations in the city. Foreign companies are encouraged to conduct R&D and invest in high-tech industries such as information technology, smart devices, health and medicine, energy conservation, environment protection, new energy vehicles, new materials, and artificial intelligence. Furthermore, Beijing will grant special permissions to qualifying foreign enterprises to take part in the city's infrastructure construction.

The document also provides guidelines for Beijing to simplify the administrative process for foreign investment, strengthen intellectual property protection, improve complaint-filing channels for foreign investors, resolve problems, and guarantee equal opportunities for foreign and domestic companies. The document says Beijing endeavors to build a market environment that is unified, open, orderly and competitive.