22 Oct 2019
China Optimises Business Environment for Foreign Investors and Prohibits Forced Technology Transfer
China’s State Council confirmed its intent to create a more conducive environment for foreign investment during the course of its 16 October Executive Meeting.
In line with this, the following measures have now been formally adopted:
Expansion of the Opening-Up Programme
- All restrictive measures (except those detailed in the foreign investment market access negative lists) relating to nationwide market access (including within the Pilot Free Trade Zones) are to be rescinded. This will include all restrictions, save those specified above, relating to the foreign ownership of mainland-sited banks, securities firms and fund management entities.
Capital Accounts Revenue Payments
- The pilot reforms relating to facilitating capital account revenue payments will be introduced on a more general basis.
Forced Technology Transfer Prohibited
- No overseas entity or individual foreign investor will be obliged to initiate any transfer of technology in any circumstances.
Support for Local Authorities in Securing Foreign Investment
- A greater range of more flexible incentive measures will be made available to local / regional investment promotion departments and related organisations.
Source: State Council of China