Beijing Opens More Service Sectors to Foreign Investment
On 18 October 2021, the State Council of the PRC released a reply to the Beijing municipal government, the Ministry of Commerce, and the Ministry of Justice, which specified that it had approved temporarily adjusting several administrative regulations and department rules approved by the State Council in Beijing municipality, effective immediately. The specific regulations and rules are: Regulations of the PRC on Chinese-Foreign Cooperation in Running Schools, Provisions on Administration of Foreign-Invested Telecommunications Enterprises, Regulations on the Administration of Commercial Performances, Regulations on the Quality Management of Construction Projects, Regulations on Survey and Design of Construction Projects, Regulations on Travel Agencies, Interim Regulations on Registration and Administration of Private Non-Enterprise Units, and Special Administrative Measures for Foreign Investment Access (Negative List) (2020 Edition).
According to the reply, market access to the following service sectors will be relaxed for foreign investment in Beijing:
- Telecommunications
(1)
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Remove equity cap on foreign investors in the information services business (limited to the APP store) in the Zhongguancun National Innovation Demonstration Zone in Haidian District. In other regions, the foreign equity proportion for information service businesses shall not exceed 50%.
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(2)
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Remove equity cap on foreign investors engaged in value-added telecommunications business, such as internet access services (limited to those providing internet access services to users), in Beijing’s Service Industry Expansion and Opening-up Comprehensive Demonstration Zone and the Demonstration Park. In other regions, the foreign equity proportion shall not exceed 50%.
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(3)
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Open domestic virtual private network (VPN) business to foreign investment (the foreign equity proportion shall exceed 50%) and attract overseas telecommunications operators to provide domestic VPN services to foreign invested enterprises in Beijing by establishing joint ventures. In other regions, foreign investors are not allowed to invest in such area.
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- Education and Training
Specific administrative measures to encourage foreign investors to invest in for-profit adult education and training institutions and support foreign investors to set up for-profit vocational skills training institutions will be formulated and released in Beijing.
- Entertainment
Foreign investors are allowed to invest in performing arts groups in the Beijing Tongzhou Culture Tourist Zone (the Chinese party must hold the controlling stake). In other regions, foreign investors are prohibited to invest in performing arts groups.
- Tourism
Qualified foreign invested travel agencies established in Beijing are allowed to provide overseas tours for mainland Chinese residents, except to Taiwan.
- Production of Audiovisual Products
Foreign investors are allowed to invest in the production of audiovisual products (restricted to cooperation within the Beijing National Music Product Base, the Beijing Publishing Creative Industry Park, and the Beijing National Digital Publishing Base. The Chinese party must have operational leadership and final adjudication of the content.). In other regions, foreign investors are prohibited to invest in such area.
- Private Non-enterprise Units
Relax access to private non-enterprise units. Permit foreign investors to donate and establish non-profit private nursing homes.
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