on november 7, the state council issued the opinions on further improving the utilization of foreign capital (hereinafter referred to as the opinions). the guidelines clearly support foreign investment in newly opened areas. we will continue to reduce the negative list for foreign investment access in the national and pilot free trade zones, comprehensively remove restrictions that were not on the negative list, ensure effective implementation of opening-up measures, and continue to raise the level of opening-up.
the guideline lays out 20 specific measures to make better use of foreign investment, stabilize the scale of foreign investment and optimize the structure of foreign investment from four aspects: deepening opening up to the outside world, strengthening investment promotion, deepening investment facilitation reform and protecting the legitimate rights and interests of foreign investors.
in support of new areas of opening up for foreign investment, the guidelines make it clear that we will continue to reduce the negative list for foreign investment access at the national level and in pilot free trade zones, comprehensively review and remove restrictive measures not included in the negative list, ensure effective implementation of opening-up measures, and continue to raise the level of opening up.
in accelerating the process of opening up the financial industry, the opinions pointed out that foreign banks, securities companies, fund management companies and other financial institutions in china should all be removed from their business scope, so as to enrich market supply and enhance market vitality. in 2020, we will abolish the restriction on foreign ownership of securities companies, securities investment fund management companies, futures companies and life insurance companies to be no more than 51%.
"opinion" is done to carry out foreign investment deployment, after the introduction of foreign investment law and related regulations, all localities and departments must strictly implement the, further clear the relevant rules and regulations, formulate specific measures for implementation and the relevant judicial interpretations, do a good job in interpretation and training to ensure that foreign investment institutions and effective execution.
cui fan, a professor at the university of international business and economics, told economic information daily that the guideline, the fourth document on the use of foreign capital issued by the state council in nearly three years, will guide the use of foreign capital next year and for some time to come.
cui fan pointed out that the 20 measures in the four aspects of the opinions, in addition to calling for greater investment promotion and investment protection, have highlighted deepening the reform of opening up to the outside world and investment facilitation. "access" foreign investment law "established after former national treatment and negative inventory management system, expanding the opening direction is clear, the focus of the next step is to deepen and refine the open, to the full implementation of access, national treatment before and after entry requirements, solve the" door opened a little door didn't open "and" access camp 'is not allowed. we need to further improve investment facilitation, reduce administrative costs and build on our achievements in improving the business environment." cui fan said that the opinions were formed after listening to a large number of opinions and suggestions from foreign investors and foreign-invested enterprises, and relevant measures were targeted, specific and operable.
according to the guideline, china will add comprehensive bonded zones in central and western regions. this is helpful to optimize the regional structure of foreign capital utilization in china.
source: china financial information network