ANNOUNCEMENT 05 Jul 2015

In July 2015, the government of China announced changed rules for foreign investors.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising
Inception date: 05 Jul 2015 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

On 5 July 2015, the Ministry of Transport issued Decree No.16 of 2015, revising the "Measures for the Examination and Approval of Wholly Foreign-funded Shipping Companies", which was originally published on 28 January 2000. The new policy came into force immediately after publication. 
 
Several key restrictions on foreign company registration have been removed according to the announcement of this decree: 

  1. Foreign companies no longer need to set up a representative office for 3 years in a Chinese harbour, before setting up their local operational office.
  2. The minimum USD 1 million paid-in capital requirement has been lifted.
  3. Companies can set up subsidiaries without paying in the full amount of paid-in capital first. 
  4. Companies no longer need to provide extra free of USD 120,000 per new subsidiary. 

 
However, several foreign investment restrictions still remain unchanged in the decree:

  1. Foreign companies should have at least 15 years of shipping experience. 
  2. Foreign companies should prove that they have stable clients and income.
  3. 85% of staff should be Chinese.

 
The affected trading partner are selected based on the "Jan - May 2015 FDI Statistics" published by Ministry of Commerce on 30 June 2015. These countries account for 94.7% of the 2015 Chinese FDI. 

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
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