SAIC to Further Encourage Foreign Investment in China

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May 13 – The State Administration of Industry and Commerce issued a notice today to further encourage foreign investment in China and to improve the overall investment environment for foreign-invested enterprises.

The notice encourages foreign-invested enterprises to upgrade to foreign enterprise groups, and allows parent companies and subsidiaries to use the term “group” in the company title. It also supports foreign enterprises transferring financial claims to the registered capital upon approval by the foreign exchange administration.

Wholly foreign-owned enterprises with registered capital of at least RMB30 million and engaged in the service or high-tech industry are now allowed to use the word “China” in the middle of their company title. In addition to other special provisions, foreign-invested enterprises and their authorized service branch can directly apply at the local registration authority for other operating subsidiaries.

In the meantime, the notice also encourages foreign enterprises to establish partnerships with Chinese companies to optimize the foreign capital structure, explore investment opportunities in central and western China, and to strengthen cooperation with border economic zones.