Circular of the State Council on Several Measures Concerning the Active and Effective Use of Foreign Investment to Boost High-quality Economic Growth
Circular of the State Council on Several Measures Concerning the Active and Effective Use of Foreign Investment to Boost High-quality Economic Growth
Circular of the State Council on Several Measures Concerning the Active and Effective Use of Foreign Investment to Boost High-quality Economic Growth
Guo Fa [2018] No.19
June 10, 2018
People's governments of all provinces, autonomous regions and municipalities directly under the Central Government, all ministries and commissions of the State Council, and institutions directly affiliated to the State Council,
Making use of foreign investment is an important component of China's basic national policy for opening-up and the formation of a new open economy system. As China's economy is now transitioning from a stage of rapid growth to a stage of high-quality development, making good use of foreign investment is confronted with new situations and challenges. To implement the decisions and arrangements of the Central Committee of the Communist Party of China and the State Council on driving the formation of a new situation for all-round opening-up, apply policies for the sake of free and facilitated high-level investment, keep up with the advanced international level, create a more fair, transparent, convenient and appealing environment for investment, maintain China's position as a major destination for global foreign investment, further boost the stable growth in foreign investment, and achieve high-quality economic development via opening-up at a higher level, relevant matters are hereby notified as follows.
I. Extensively Easing Limits on Market Entry and Improving the Freedom in Investment
1. Implementing the Pre-establishment National Treatment and Negative List Management Systems in All Aspects. Revised special administrative measures (negative list) concerning the entry of foreign investment respectively for national areas and pilot free trade zones will be rolled out by July 1, 2018 and aligned with international prevailing rules, to expand opening-up in all aspects and facilitate reform, development and innovation through opening-up. No region or department shall impose specific limits on the entry of foreign investment in areas not specified on the negative list. (Leading entities: National Development and Reform Commission and Ministry of Commerce; responsible entities in accordance with the assignment of their duties: all related departments and provincial people's governments)
2. Steadily Expanding the Opening-up of the Finance Industry. Relax the limits on the establishment of foreign-invested financial institutions, broaden the scope of the licensed business of foreign-invested financial institutions, and widen cooperative areas between Chinese and foreign financial markets. Revise and improve the provisions concerning Qualified Foreign Institutional Investors (QFII) and Renminbi Qualified Foreign Institutional Investors (RQFII), institute and optimize the transparent qualified foreign investment regime whereby it is convenient to formulate operations and possible to keep risks under control, and appeal to more foreign long-term investment in the domestic capital market. Make vigorous efforts to advance the development of the crude oil futures market, and proactively promote the introduction of overseas dealers to participate in transactions of such futures varieties as iron ore. Deepen reform in the regulation of overseas IPOs, support eligible domestic enterprises to become listed abroad, and make steady and orderly progress in turning unlisted shares of overseas-listed companies to be listed and traded in overseas markets. Support foreign-invested financial institutions to engage more in underwriting local government bonds. (Responsible entities in accordance with the assignment of their duties: Ministry of Finance, Ministry of Commerce, People's Bank of China, China Banking and Insurance Regulatory Commission and China Securities Regulatory Commission)
3. Continually Driving the Opening-up of the Service Sector. Abolish or ease restrictions on the entry of foreign investment in transport, trade and logistics, professional services, and other areas. Ramp up efforts in stress testing of opening-up in such areas as telecommunications, culture and tourism in pilot free trade zones. (Responsible entities in accordance with the assignment of their duties: Publicity Department of the CPC Central Committee, Office of the Central Cyberspace Affairs Commission, National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Transport, Ministry of Agriculture and Rural Affairs, Ministry of Commerce, Ministry of Culture and Tourism, State Grain and Reserves Administration, and other related departments)
4. Deepening Opening-up in Agriculture, Mining and Manufacturing Industries. Abolish or ease the limits on the entry of foreign investment into agricultural fields, such as the seed industry, areas of the mining industry, such as coal and non-metal ore, and sectors of the manufacturing industry, including automobiles, vessels and airplanes. (Responsible entities in accordance with the assignment of their duties: National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Natural Resources, Ministry of Agriculture and Rural Affairs, Ministry of Commerce, etc.)
II. Deepening Reform of "Streamlining Administration, Delegating Power and Strengthening Regulation and Improving Services" and Improving Investment Facilitation
5. Constantly Pushing Ahead the Reform of "Streamlining Administration, Delegating Power and Strengthening Regulation and Improving Services" in the Field of Foreign Investment. Proposed foreign-invested enterprises, and alterations to existing foreign-invested enterprises will be examined, approved and administered by provincial people's governments, provided that such enterprise is on the negative list for entry of foreign investment and its investment amount is less than USD1 billion.
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