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A number of opening-up measures have been implemented in Beijing to cover a full range of matters in the fields of information transmission, software, and information technology service. These measures will make it easier and simpler to invest and do business in Beijing.

However, there are some investment requirements and restrictions that you should be aware of in advance.

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I. Remove the caps on foreign equity holdings in value-added telecommunications services, such as store-and-forward services, domestic multi-party communication services, and Internet access services (Internet access services for subscribers only) in the integrated pilot demonstration zone and demonstration parks for opening up the service sector in Beijing,.

II. Open the domestic Internet virtual private network (VPN) business to foreign investors (foreign investors to hold less than 50 percent of the shares) and attract overseas telecom operators to provide domestic Internet VPN services for foreign-invested enterprises in Beijing via establishment of joint ventures.

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I. Telecommunications carriers: limited to the opening of telecommunications services in the commitments made by China upon WTO accession. The foreign stake in a value-added telecommunications service may not exceed 50% (except e-commerce, domestic conferencing, store-and-forward, and call center services), and the Chinese party shall have a controlling stake in basic telecommunications.

Investment within the FTZ: Telecommunications companies: Foreign investors are limited to telecommunications services opened up pursuant to China’s WTO commitments. The share ratio of foreign investment in value-added telecommunications services (except for e-commerce, domestic multi-party communications, store-and-forward, and call centers) shall not exceed 50%. The basic telecommunications business must be controlled by Chinese investors (the operator must also be a legally established company specializing in basic telecommunications services). The pilot policies covering the original area (28.8 square kilometers) of the China (Shanghai) Pilot Free Trade Zone shall be extended to all pilot free trade zones.

II. Investment in Internet news information services, Internet publication services, Internet video and audio program services, Internet cultural operation (except music), or services of information release to the public through the Internet (except those already opened up in the commitments of China made upon WTO accession) shall be prohibited.

See the full version of Special Administrative Measures (Negative List) for the Access of Foreign Investment (2020 Edition)

See the full version of Special Administrative Measures (Negative List) for Foreign Investment Access to Pilot Free Trade Zones (2020 Edition)