China Regulatory Brief: Eased Restrictions on Overseas Financing, New Regulations on Imported Dairy Products

February 16, 2015 Posted by China Briefing Reading Time: 4 minutes

Shanghai FTZ Eases Restrictions on Overseas Financing

On February 12, the Shanghai Head Office of the People’s Bank of China released the “Regulations on Prudent Macro Management for Overseas Financing and Cross Border Capital Flow in Separate Accounting (Yin Zong Bu Fa [2015] No.8).” The Regulations clarified that companies and financial institutions in the Shanghai Free Trade Zone (FTZ) are allowed to carry out overseas financing independently. Previously, companies were required to obtain pre-approval from relevant authorities prior to borrowing overseas. This is a major step forward in the financial reforms of the Shanghai FTZ.

China Accelerates the Development of Trade in Services

On February 14, China’s State Council published the “Opinions on Speeding up the Development of Trade in Services.” The Opinions stated that China’s import and export volume of services will exceed US$100 million by 2020. Investors are highly encouraged to participate in the areas of transportation, communication, finance, insurance, IT and environmental protection. In the meantime, the Chinese government will relax the limitations on foreign investment in the field of construction, audit and accounting, logistics and e-commerce. The export of taxable services shall be exempt from value-added tax (VAT).

China Implements New Regulations on Imported Dairy Products

The General Administration of Quality Supervision, Inspection and Quarantine (GASQSIQ) recently released the amended “Regulations on Imported Dairy Product Inspection and Quarantine,” which further adjusted and expanded the scope of inspection and quarantine. According to the revised Regulations, from February 1 imported pasteurized milk requires quarantine approval with the inspection bureau. Further, from May 1, first-time exporters of milk to China must provide relevant inspection reports and obtain an entry quarantine certificate with the GASQSIQ.

Shanghai FTZ Launches Credit Inquiry Service Platform

On February 10, the Shanghai FTZ officially launched a credit inquiry service platform, which will be the first Chinese credit service platform to have access to the credit information of both enterprises and individuals. The credit information, covering 1.38 million enterprises and 24 million individuals, are jointly provided by the People’s Bank of China and the management committee of the FTZ. Individuals and enterprises may apply for their own credit reports either at the FTZ’s service center or online.

China Negotiates with 28 Countries on High Speed Rail Projects

According to an announcement made by state-backed train maker China CNR on February 11, China is in talks with 28 countries including the U.S., Russia and Brazil on potential high-speed rail projects. China has been making efforts to accelerate railway construction and sell its high-speed trains to foreign countries. The country’s top two train makers, namely China CNR and CSR announced their plan to merge last December, becoming the world’s largest train maker. While the rail project in Russia is expected to be fully negotiated and signed off later this year, different manufacturing standards, trade barriers and working visa limits remain a major issue for Chinese companies.

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