Foreign Firms Get Go Signal to Partner with Chinese Businesses

To help spur development of industries including services, the Chinese government is encouraging foreign enterprises or individuals with advanced technology and management experience to set up partnerships on the mainland, reveals the South China Morning Post.

 

The Post says that the new rules require applicants to prove their investments comply with the ministry's foreign investment catalogue, which lists areas where foreign investment is encouraged, restricted or prohibited. The new rules also state that partnership applicants only need to apply to the local units of the State Administration of Industry and Commerce instead of the higher-level Ministry of Commerce.

 

Zou Ji, a Shanghai partner of international law firm Allen & Overy, told the Post that the advantages of partnerships over joint ventures or wholly foreign-owned entities under the new rules include a more favourable tax treatment and simpler approval process.

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