The People's Government of Beijing Municipality and the Ministry of Commerce:

Your request for instructions on the framework plan for the comprehensive pilot project of opening-up of the service sector in Beijing has been received. Our reply is hereby made as follows:

I. We hereby approve the carrying-out of the comprehensive pilot project of opening-up of the service sector in Beijing for three years commencing on the date of this official reply. The Framework Plan for the Comprehensive Pilot Project of Opening-up of the Service Sector in Beijing (hereinafter referred to as the "Plan") is hereby approved in principle and you shall diligently organize the implementation thereof.

II. You shall, according to the decision and deployment of the CPC Central Committee and the State Council, closely center on the strategy of coordinated development of Beijing-Tianjin-Hebei Region, put forth efforts to promote the modernization of the services sector in Beijing and improve the development level of trade in services, establish and improve a system and mechanism with Chinese characteristics, the characteristics of the capital, and the characteristics of the times, and create a basic framework for the opening-up of the services sector compatible with the international rules, so as to make the comprehensive pilot project of opening-up of the services sector in Beijing become an important practice of the state for all-around active opening and to contribute to the exploration for the building of a new system of open economy.

III. The People's Government of Beijing Municipality shall strengthen organizational leadership for the implementation of the Plan. The initiative, progressive, and controllable principle shall be abided by, to strengthen top-level design of pilot project, make scientific plan for paths of opening-up, preferentially choose major fields which are mature and have relatively huge market potentialities, steadily expand the scope of pilot project, and promote the orderly opening-up of the services sector. Attention shall be paid to system and institutional innovations; the reform of market access mechanism and supervision model shall be accelerated; the building of the auxiliary supporting systems shall be propelled; the vitality of the market shall be activated; and a services industry promotion system shall be established and improved, to boost the overall transformation and upgrading of the services sector.

IV. Relevant departments of the State Council shall, based on the division of duties, actively support the comprehensive pilot project of opening-up of the services sector in Beijing, and test certain major reform and opening-up measures first. The Ministry of Commerce shall, in conjunction with relevant departments, strengthen guidance and coordinated promotion, and organize and carry out supervision and evaluation, to ensure that all reform and opening-up measures are implemented effectively.

V. During the period of the pilot project, the implementation of some specific provisions of relevant administrative regulations, documents of the State Council, and departmental rules approved by the State Council shall be temporarily adjusted, and the adjustments shall be separately issued by the State Council. Relevant departments under the State Council shall, in accordance with the Plan, adjust the rules and the normative documents developed by them. The People's Government of Beijing Municipality and the Ministry of Commerce shall, in a timely manner, report all significant issue, if any, encountered in the implementation of the Plan, to the State Council for instructions.

Annexes:

1. Framework Plan for the Comprehensive Pilot Project of Opening-up of the Services Sector in Beijing

2. Measures for the Comprehensive Pilot Project of Opening-up of the Services Sector in Beijing

State Council

May 5, 2015

Annex 1

Framework Plan for the Comprehensive Pilot Project of Opening-up of the Services Sector in Beijing

This Plan is formulated, to comprehensively and effectively promote the comprehensive pilot project of opening-up of the services sector in Beijing.

I. General requirements

1. Guiding Thought. Local authorities shall comprehensively carry out the spirit of the 18th CPC National Congress and the Second, the Third, and the Fourth Plenary Session of the 18th CPC Central Committee, under the guidance of the Deng Xiaoping Theory, the important thought of "Three Represents", and the Scientific Outlook on Development and according to the decision and deployment of the CPC Central Committee and the State Council, closely center on the strategy of coordinated development of Beijing-Tianjin-Hebei Region, put forth efforts to promote the modernization of the service sector in Beijing and improve the development level of service trade, establish and improve a system and mechanism with Chinese characteristics, characteristics of the capital, and the characteristics of the times, and create a basic framework for the opening-up of the service sector compatible with the international rules, to contribute to the exploration for the building of a new system of open economy.

2. Main Principles.

Top-level design shall be strengthened. On the basis of the characteristics of the service sector in Beijing, attention shall be paid to interconnection with all policies of the state on comprehensive deepening of reform and international trading rules, to enhance the system, integrity, and synergy of reform. At the same time, scientific plan shall be made for paths of opening-up, to steadily promote the opening-up of the service sector in Beijing, on the basis of partial and staged practice.

System innovation shall be focused on. To promote the orderly free flow of international and domestic factors, high-efficient allocation of resources, and in-depth market integration, a system and mechanism shall be established and improved for the opening-up of the services sector. The list of opening-up of the services sector shall be formulated; reform of such systems on financial guarantee and high-end talents introduction shall be deepened; and a scientific and standardized, efficient and transparent service promotion system shall be built.

Key fields shall be focused on. Comparative advantages of the services sector in Beijing shall be maximized. The opening-up of such six major fields as scientific and technological services, Internet and information services, cultural and educational services, financial services, commercial and tourism services, and health care services shall be promoted actively. At the same time, the reform of outbound investment management system shall be deepened, to boost the overall transformation and upgrading of the services sector.

Efforts shall be put forth to create an environment. Cultivation of an internationalized, market-oriented, and legalized business environment shall be accelerated; and social credit system and intellectual property protection system shall be improved, to promote innovative development, brand building, and efficient operation of enterprises, stimulate headquarters cluster of high-end enterprises, and enhance the productivity and the development quality of the life services sector. The free flow needs of talent elements shall be centered on; the building of international talent training and development environment shall be accelerated; working and living convenience shall be enhanced; and high-end talents cluster shall be promoted.

3. Development Goals. After the pilot projects have been implemented for three years, a new pattern for the opening-up of the services sector in Beijing abiding by the international rules shall be strenuously formed and the experience that is able to be replicated and promoted across the country shall be accumulated, to make the comprehensive pilot project of opening-up of the services sector become an important practice of the state for all-around active opening-up.

II. Creating an Opening-up Pattern for the Services Sector

4. Fields of Scientific and Technical Services. The core function of the capital as the national science and technology innovation centre shall be strengthened; keen attention shall be attached to Zhongguancun for the building of a science and technology innovation center with global influence; new service industry, science and technology service industry, e-commerce, modern logistics, energy conservation and environmental protection, and other industries based on information technology shall be developed vigorously. Support shall be granted to Zhongguancun for building of an Internet financial innovation center, exploration of scientific and technological enterprises' overseas investment management system innovation, simplification of the procedures for settlement of foreign exchange capital of enterprises in Zhongguancun, and the promotion of enterprise investment and trade facilitation. Registration of foreign scientific and technological, educational, and economic non-government organizations that set up representative offices in Zhongguancun, as well as overseas organizations or individuals that initiate the establishment of scientific and technological and economic private non-enterprise entities shall be carried out on a trial basis, to create a favorable environment under which domestic and overseas social organizations conduct innovation in a coordinated manner and realize mutual promotion, and to enhance the international influence and competitiveness of Zhongguancun. The role of the Public Service Platform of Zhongguancun for Standardization, Measurement, Testing and Certification shall be maximized, to attract international and domestic institutions providing standards, measurement, testing, and certification services to settle in Zhongguancun. Support shall be granted to the "going out" of science and technology services; intellectual property service institutions shall be encouraged to provide overseas services; guidance shall be offered to scientific research institutions, colleges and universities, and enterprises for applying for patents overseas; participation in the formulation of international standards shall be encouraged; and science and technology services' accelerated integration to the globalization process shall be promoted. The access threshold for foreign investment in technical services shall be reduced. Requirements on engineering design performance of investors for initial application for qualifications shall be canceled for foreign-funded engineering design (excluding engineering investigation) enterprises. Restrictions on foreign-funded airplane maintenance projects to be initiated with Chinese parties as controlling shareholders shall be removed.

5. Internet and Information Service Fields. Domestic and overseas capital cooperation in the Internet and information service sector shall be promoted. Foreign capital shall be encouraged to enter into software and information services, integrated circuit design and other emerging industries, and the innovation of such service models and business models as cloud computing, Internet of Things, mobile Internet, and the next-generation Internet, among others, shall be promoted. Multinational companies shall be attracted to establish research and development centers, offshore service centers, and business headquarters in Beijing and to carry out joint venture cooperation by talents introduction, technology import, cooperative development, and other ways. The industry chain of information services shall be extended. Foreign capital shall be supported to provide information technology support management, financial settlement, and other international service outsourcing services. High-end and internationalized development of service outsourcing shall be promoted. A global leading execution place shall be created. Comprehensive pilot projects shall be carried out for electronic invoices and electronic accounting files; cross-border e-commerce operation mode and management policies shall be improved; and the international market channels shall be expanded.

6. Fields of Cultural and Educational Services. Orderly opening-up of culture, education, and other services sectors shall be promoted. The capital operation channels of the cultural creative industries shall be broadened. Within the scope permitted by laws and regulations of the state, domestic and foreign well-known cultural creativity, production, brokerage, and marketing agencies shall be encouraged to establish joint ventures and cooperate with cultural enterprises in Beijing. A diversified service model shall be developed for the cultural market; specific regions where culture and entertainment industry clusters shall be selected; and foreign investors shall be allowed to solely invest in and establish performance brokerage institutions to provide services within the administrative region of Beijing. New overseas promotion pattern shall be innovated for cultural services; a business development pattern that combines intangible cultural heritage represented by traditional manual skills, martial arts, drama, folk music, and dance, among others, and tourism and exhibition shall be supported; enterprises of radio and television, press and publication, among others shall enter the international market by way of project cooperation; and the pilot program of commercial operation of overseas tour shall be implemented, to enhance the core competitiveness of cultural services. Education opening-up and cooperation shall be expanded; foreign investors shall be encouraged to set up schools for children of foreigners (it shall apply to investors in Hong Kong Special Administrative Region, Macao Special Administrative Region, and Taiwan Region, mutatis mutandis); and foreign businessmen shall be supported in investing in and establishing education and training institutions and projects through the way of Sino-foreign cooperative education, and actively running Sino-foreign cooperative schools with world-renowned universities and colleges introduced, for benign educational resource interaction.

7. Fields of Financial Services. Qualified private investors and foreign investors shall be supported in entering the financial service sector. The equity structure of financial institutions shall be optimized; and establishment of foreign banks by foreign-funded financial institutions as well as joint establishment of Chinese-foreign equity joint venture banks by private investors and foreign financial institutions shall be facilitated, under the conditions of abiding by relevant regulations, to make foreign financial institutions and private investors provide financial services and participate in market competition under equal market conditions and participate in market competition under equal market environment. Insurance business shall be actively developed; the establishment of foreign professional health insurance institutions shall be supported; and the participation of the commercial insurance in basic medical care and the building of a basic elderly care service system shall be explored. Multi-level capital market system shall be improved; financial innovation shall be encouraged; the level and variety of financial markets shall be enriched; the direct financing channels of enterprises shall be broadened; financial institutions in Beijing shall be supported in participating in the pilot project of securitization of credit assets; and commercial banks in Beijing shall be supported in issuing innovative capital instruments to supplement capital. Extension of the financial market towards the international direction shall be promoted; under the premise of sustainable business and controllable risk, powerful financial institutions shall be supported in offering overseas services through the establishment of overseas branches, merger and acquisition, and other various channels; and securities and other financial institutions shall be directed to provide international services overseas in due time.

8. Fields of Commercial and Tourism Services. Investment with social capital in commercial services shall be promoted. The restrictions on foreign investment access to accounting audit, commercial logistics, e-commerce, and other sectors shall be removed. Foreign investors shall be encouraged to invest in energy saving and environmental protection, venture capital investment, intellectual property services, and other commercial service sectors. Support shall be granted to participation of foreign investors in the transformation and restructuring of domestic commercial service enterprises in the form of holding non-controlling shares, as well as merger and acquisition. Foreign investors shall be allowed to invest in credit investigation companies (experiment of service providers from Hong Kong or Macao shall be conducted); the scope of pilot projects shall be expanded gradually; and foreign credit companies' settlement in Beijing and corporate operation shall promoted. Hong Kong and Macao professionals who are qualified as Certified Public Accountants of Chinese Mainland shall be allowed to serve as the partners in partnership accounting firms. The development of accounting, consulting services, and other commercial service fields shall be promoted, to provide policy support for the establishment of overseas branches, exploration of international business, and branding by domestic accounting firms. The provision of high-end consulting services worldwide in foreign investment, finance management, engineering construction, and other areas by local enterprises shall be promoted. The opening-up level of the human resources market shall be improved. A Chinese-foreign joint venture talent intermediary agency shall be established in Zhongguancun. In the aforesaid agency, a foreign investor may not hold more than 70 percent of equity and the minimum registered capital shall be decreased from CNY 300,000 to CNY 125,000. The pilot project of comprehensive tourism reform shall be deepened and the tourism opening mechanism shall be further improved and expanded. Foreign investors shall be encouraged to invest in tourism, participate in the development and construction of commercial tourist attractions, and invest in tourist commodities and facilities. In the pilot project of expanding the scope of providing overseas tourism services by Sino-foreign joint venture travel agencies, support shall be granted to qualified Sino-foreign joint venture travel agencies established in Beijing for the provision of outbound tourism services excluding Taiwan Region. The internationalization degree of the China (Beijing) International Service and Trade Fair, the China Beijing International High-Tech Expo, and other famous exhibitions shall be enhanced and the internationally-renowned exhibitions shall be introduced to settle in Beijing, to realize integration of resources and complementation in advantages of domestic and foreign exhibitions, and to create a capital where international activities cluster.

9. Fields of Health Services. The formation of diversified development pattern of medical services shall be accelerated. Support shall be granted to social investors for entering the medical services sector by contribution of capital, new construction, participation in restructuring, custody, state-found-private-run, and other ways. Under the principles of gradual opening-up and controllable risks and on the basis of complying with the regional medical institutions establishment plans and conducting risk assessment for foreign investment, restrictions on Sino-foreign joint venture hospitals and Sino-foreign cooperative operation of hospitals shall be relaxed step by step, approval authorities shall be adjusted, and facilitation shall be provided to investors for reporting. Foreign investors shall be allowed to establish non-profit medical institutions and provide basic health services. The professional development of health services shall be promoted; restrictions on permission for foreign investment in elderly care fields shall be removed; and investment shall be guided to rehabilitation nursing, nursing for the aged, home nursing, and other nursing services, as well as maternal and child care services, mental health services, and other medical and health care fields. New health resources shall be approved in accordance with the relevant plans and standards. The building of national Chinese medicine service trade demonstration provinces (municipalities) shall be promoted; the exploration of international markets for characteristic medical services shall be promoted; and an international market-oriented Chinese medicine service trade promotion system shall be established. The demonstration and leading role of leading Chinese medicine service trade enterprises shall be maximized; the overseas marketing channels shall be improved; and international brands of Chinese medical services shall be created.

10. Deepening the Reform of Outbound Investment Management System. Under the principles of market orientation and independent decision-making by enterprises, status of enterprises and individuals as outbound investors shall be established; overseas investment approval procedures shall be simplified; and a management model dominated by recordation system shall be implemented. Enterprises in Zhongguancun shall be supported in developing by utilizing international innovative elements, and be encouraged to set up overseas research and development institutions, acquire overseas technologies, and conduct other technical investment. Investors shall be encouraged to maximize their own advantages in overseas investment cooperation. Support shall be granted to "going out" to conduct greenfield investment, mergers and acquisitions investment, portfolio investment, and joint investment, among others. Policy support and guidance shall be strengthened; orderly overseas investment cooperation of service enterprises of all kinds of ownership shall be promoted; international operation in research and development, production, logistics, sale, and other respects shall be conducted; overseas distribution centers, exhibition centers and other international marketing network and logistics service networks shall be established; advanced production factors shall be absorbed; famous international brands shall be created; and market competitiveness shall be enhanced.

III. Optimizing the Auxiliary Supporting System

11. Optimizing Social Credit Environment. The social credit system shall be improved; the power and role of the government, industry, and the market shall be maximized; the personal credit record system shall be established and improved; the promotion of the building of the credit information system shall be accelerated; and publicity, sharing, and application of credit information shall be promoted. The mechanisms for stimulating integrity and punishing dishonesty shall be structured; departmental interaction shall be strengthened; handling of formalities, simplifying procedures, and other supportive and incentive policies shall be adopted for dishonest subjects; and market, industry, and social restraint and discipline shall be intensified for dishonest subjects, to create a social credit environment of honest business. Intellectual property protection shall be strengthened; intellectual property rights law enforcement mechanisms shall be improved; intellectual property service system shall be improved; and intellectual property rights operation system and trading platform shall be built, to create a favorable environment for the sound development of intellectual property service institutions.

12. Transforming the Market Regulation Model. An opening-up list of six major fields of the services sector in line with the requirements of the strategic positioning of the capital city and demographic resource environmental carrying capacity shall be formulated and equal, standardized, open, and transparent market access standards shall be established, to further enhance the facilitation, normalization, and transparency of access management. Facilitation of the industrial and commercial registration system shall be promoted; procedures shall be simplified; and the service mode shall be optimized, to improve service performance. The interim and ex post supervision system shall be improved; a classified risk management mechanism shall be established; attention shall be paid to risk monitoring and early warning; and the tip-off and complaint management system shall be improved, to maintain market order.

13. Innovating on High-end Talents Cluster Mechanism. Introduction to high-level overseas talents in the six major fields of the services sector shall be intensified. Rapid formalities shall be offered by the Beijing Municipal Human Resources and Social Security Bureau and the entry-exit administrative department to the applications of qualified high-level overseas talents and their spouses and children for multiple-return visas or residence permits. The human resources and social security departments and public security departments shall launch green passageway and accelerate the handling process for applications of foreign high-level talents introduced for the six major fields of the service sector for permanent residence. Foreign high-end talents shall be encouraged to start up business in Beijing; the approval process for the start-up of scientific and technological enterprises by foreigners in Zhongguancun shall be optimized; and the building of an innovative business start-up environment meeting the international standards shall be actively promoted.

14. Intensifying Financial Guarantee. Foreign exchange management reform shall be deepened and convertibility under capital account shall be promoted in an accelerated manner. The foreign exchange recordation procedures for overseas investment shall be simplified; the scope of pilot enterprises shall be gradually expanded on the basis of pilot reform of overseas merger and acquisition foreign exchange administration in Zhongguancun; and support shall be granted to enterprises in Beijing to grasp the favorable opportunities for overseas merger and acquisition, rapidly obtain international market resources, grasp advanced technologies, and improve competitiveness of enterprises on the international market. Facilitation of cross-border investment and financing shall be promoted; enterprises in the services sector shall be encouraged to broadly participate in international acquisition and reorganization activities; and assistance shall be provided to enterprises for exploring the financing channels and ways meeting the rules of the international market. Innovation of financial products and service modes shall be promoted; credit support for enterprises in major fields of the service sector in Beijing shall be intensified; enterprises of the services sector, non-bank financial institutions, and other economic organizations registered in Beijing shall be gradually allowed to borrow domestic and foreign currency funds in accordance with the regulations; and the development of the real economy of the financial services shall be intensified.

15. Improving the Level of Customs Clearance Facilitation. The functional advantages of the policies on areas under special customs supervision shall be maximized, to further improve the level of customs clearance facilitation. The establishment of bonded warehouses by qualified enterprises in six major fields of the services sector and the Software Park, the Life Science Park, the Animation Park, and other special functional districts in the Zhongguancun Demonstration Area shall be promoted. The approval formalities for entry and exit of special items required for biological medicine research and development shall be simplified on a trial basis, to improve the approval efficiency. Supervision model innovation for international exhibits, artworks, and others required by exhibition, auction, and other enterprises of the service sector shall be explored, to enhance customs clearance facilitation.

Annex 2:

Measures for the Comprehensive Pilot Project of Opening-up of the Services Sector in Beijing