Cities win overseas investment access

China's State Council — the country's Cabinet — announced on Thursday that six cities on the Chinese mainland will expand overseas investment access to several service sectors, including eldercare, travel, telecommunications, entertainment and live performance and entertainment businesses.

Some cities are allowed to permit foreign-funded travel agents engaged in the outbound travel business, with the exception of the Taiwan region. Some have been granted the power to approve entertainment and performance activities funded by investors from the Hong Kong and Macao special administrative regions and Taiwan. This authority was originally the domain of provincial-level governments.

The six cities are Shenyang, Liaoning province; Nanjing, Jiangsu province; Hangzhou, Zhejiang province; Wuhan, Hubei province; Guangzhou, Guangdong province; and Chengdu, Sichuan province.

Previously, foreign-funded travel agencies could not conduct overseas travel business for mainland residents, including travel to Hong Kong, Macao and Taiwan. Now, Shenyang, Nanjing, Guangzhou and Chengdu are permitted to establish such agencies that engage in outbound travel business, excluding Taiwan. Nanjing, Hangzhou, Wuhan, Guangzhou and Chengdu have also been granted the authority to handle two types of applications from organizations established by foreign investors and investors from Hong Kong, Macao and Taiwan.

These two applications include requests from entertainment venues to engage in entertainment business activities and applications for investments for the establishment of performance venues and organizations.

Furthermore, the authority to organize commercial performances involving foreign, Hong Kong, Macao or Taiwan art, entertainment or performance groups and individuals has also been decentralized. Nanjing, Wuhan, Guangzhou and Chengdu now possess the authority to organize such commercial performances.

In addition to the travel and entertainment sectors, foreign investors also enjoy broader access to various other service areas in these cities.

Shenyang, Wuhan, Guangzhou and Chengdu have been granted permission to establish nonprofit medical institutions through joint donations by domestic and foreign entities. In Hangzhou, Guangzhou and Chengdu, foreign investors are authorized to donate funds for the operation of nonprofit eldercare organizations and register them as private non-enterprise units. Shenyang, Nanjing, Hangzhou, Guangzhou and Chengdu are allowed to open their internet virtual private network business to foreign investors, as long as their shareholding does not exceed 50 percent.