Beijing Issues Guidelines on Foreign Investment in Service Industry

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Last updated at: (Beijing Time) Wednesday, March 27, 2002

Beijing Issues Guidelines on Foreign Investment in Service Industry

The Beijing municipal government has drawn up guidelines on foreign investment in the tertiary industry, which are expected to take effect on April 1. The new guidelines are aimed at helping Beijing take the lead in opening up the tertiary-industry sector, especially in commerce, construction, education, environmental protection, finance, logistics, telecommunications, tourism and transport.

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Foreign investment guided in tertiary industry

The Beijing municipal government has drawn up guidelines on foreign investment in the tertiary industry, which are expected to take effect on April 1.

Zhou He, vice-director with the Beijing Foreign Trade and Economic Co-operation Committee, said: "The new policy is based on the Chinese Foreign Investment Guidelines issued by the central government this month and designed to face the challenges and opportunities brought by China's accession to the World Trade Organization and Beijing's successful bid for the 2008 Olympic Games."

The new guidelines are aimed at helping Beijing take the lead in opening up the tertiary-industry sector, especially in commerce, construction, education, environmental protection, finance, logistics, telecommunications, tourism and transport.

Sino-foreign cooperation to be strengthened

Foreigners are allowed to set up wholly foreign-funded enterprises, as long as they are engaged in architecture technology consultancy, investment management, public relations, personnel training, restaurant business, real-estate development and management.

Foreign commercial and logistics enterprises are encouraged to take part in the operation of modern logistics, chain stores and supermarkets, as well as e-business.

The municipal government is trying to sharpen the competitive edge of its telecom companies by promoting Sino-foreign co-operation and assets reorganization.

"For the tourism sector, the existing joint ventures should further expand their scale of operations and enhance their efficiency and service quality in a short period of time," Zhou said.

Meanwhile, the Beijing municipal government will spare no effort to attract more international tourism organizations and foreign business associations to set up regional headquarters and representative institutes in the city and encourage foreign investors to take part in the construction and renovation of large-scale traveling facilities and visiting sites.

"An urgent task of the financial sector might be introducing more experienced professionals, and the government should encourage leading foreign financial institutions to set up intermediary and consultancy subsidiaries or joint ventures here," Zhou said.

More opportunities available

In addition to the above sectors, the 2008 Olympic Games will offer huge opportunities to Chinese and foreign investors.

"A series of public-bid invitations is to be held for projects related to the world's grandest sporting event," Zhou said.

The bids will involve energy supply, transport, environmental protection, renovation of dangerous and old houses, and the construction of sports stadiums and supporting facilities. The total required investment is estimated to be 240 billion yuan (US$28.9 billion).

The government will create a fair and transparent arena for investors from home and abroad to compete in accordance with international principles and market practice.

"We are striving to offer the participants sufficient, complete and accurate information and policy consultancy services," Zhou added.

Fields Encouraged to be Invested by Foreign Investment

China will mainly encourage foreign investors to invest in the following fields:

1, To encourage foreign investors to transform traditional agriculture, develop modern agriculture and promote agricultural industrialization.

2 To encourage foreigners to invest in communications, energy, raw material, infrastructure and other fundamental industries.

3 Electronic information, biology engineering, new material, aeronautics and astronautics and other high-tech industries will also be opened for foreign investors.

4To encourage them to use advanced technology in helping China transform machinery industry, light and textile industries so as to achieve the upgrading of equipment industry.

5 Projects for comprehensive utility of resources, recycled resources, environmental protection and municipal construction will be opened to foreign investors.

6 To encourage foreigners to invest in China's western regions.

7 To encourage the exports of all the permission items.

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