ANNOUNCEMENT 17 Jan 2017
17th January 2017 - Following an 'executive meeting' charied by Premier Li Keqiang in December 2016, the State Council of China announced a drive to open up the country to foreign investment, by making it easier for foreign entreprises to list on domestic Chinese markets, amongst other things. The plan is to be achieved through various upcoming policy changes, easing restrictions on various investment activities (see related measure for one such example).
NUMBER OF INTERVENTIONS
State Council of the PRC, 12th January 2017. (国务院关于扩大对外开放积极利用外资若干措施的通知)
PRC Ministry of Industry and Information Technology, 20th December 2016. (李克强主持召开国务院常务会议确定扩大对外开放积极利用外资的政策措施 营造更加公平便利的市场环境)
On the 17th of January 2017, the State Council of the PRC released a plan that shed some light on the announcement in December 2016 that Li Keqiang had chaired a top-level State Council meeting, in which it was agreed to increase leniency on foreign firms wishing to invest in the PRC.
The January plan announces that restrictions on various investment activities, such as banking, securities, futures, mutual funds and insurance, will be relaxed, as well as the 'opening up' of investment opportunities in several other sectors (e.g. mining, service, green technology, etc.).
In the Plan, the State Council encourages the relevant administrative bodies to reduce the amount of bureaucratic red tape surrounding the set-up and operations of foreign businesses in the PRC, for example, specifically attracting foreign multinationals to open up regional headquarters, procurement centres, etc.
As well as these administrative relaxations, the Plan also calls for the reduction in corporation tax for foreign businesses, specifically in the central and western regions of the PRC, as well as the general prioritisation of these areas for foreign investment. In response, a February 2017 announcement was released about FDI priorities in these regions; see related measure for more information.