3 Jan 2019
Hainan Rolls Out Business Environment Optimisation Measures
Hainan has introduced a number of measures aimed at boosting business across the province. Among the changes is a reduction in the time needed to register a new business, as well as the separation of business licences from operating permits across a greater number of sectors, including tourism, agriculture and healthcare. Inward investment is also to be made easier, with the implementation of a negative list for foreign-invested enterprises and the cancellation of foreign investment restrictions in several sectors, including new energy vehicles.
The updates were revealed in the recently published Action Plan for Optimising the Business Environment (2018-2019), which aims to develop the Hainan Pilot Free Trade Zone and Free Trade Port in line with the priorities outlined at the national level.
Among the key elements of the plan are the following:
- Cutting the time required to register a new business to a maximum of three working days.
- Expanding the programme for separating business licences from operating permits from 106 sectors to 130, including tourism, agriculture and healthcare. Among the changes this will entail is that Category B medical device users (assuming they are medical institutions not owned or controlled by government authorities) will be entitled to acquire large-scale medical equipment under newly-granted acquisition licensing powers, while a commitment notification system for overseas medical practitioners coming to China for short-term practice will also be put in place.
- Formalising Hainan’s industrial restructuring programme, which will include the full implementation of the pre-establishment national treatment system in the form of a foreign investment negative list, as well as the adoption of the filing procedures required to establish foreign-invested businesses operating in non-negative list sectors and to update their details as required, in accordance with the principle of ensuring equal treatment for domestic and foreign investors.
- Expanding the opening up of designated key industries, including rescinding foreign investment restrictions on new-energy vehicle manufacturing, permitting foreign investment in domestic virtual private network (VPN) businesses (as long as the foreign equity ratio does not exceed 50% of the total) and permitting foreign investment in cultural performance groups (as long as the mainland parties retain the controlling stake).
For further details (in Chinese), please access the following link: