Official Reply of the State Council to the Plan for Deepening the Reform and Promoting the Comprehensive Pilot Program of Expanding Opening-up in the Service Sector of Beijing Municipality

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

Your request for instructions on the comprehensive pilot program for expanding opening-up in the service sector of Beijing Municipality has been received. The following official reply is hereby offered:

I. It is hereby approved to continue deepening the reform and promoting the comprehensive pilot program of expanding opening-up in the service sector during the period of the pilot program of expanding opening-up in the service sector of Beijing Municipality. The Plan for Deepening the Reform and Promoting the Comprehensive Pilot Program of Expanding Opening-up in the Service Sector of Beijing Municipality (hereinafter referred to as "the Plan") is hereby approved in principle and you shall conscientiously organize the implementation thereof.

II. You shall further implement the spirit of a series of important speeches and new concepts, thoughts and strategies of managing state affairs of General Secretary Xi Jinping, conscientiously implement the decisions and deployment of the Central Committee of the Communist Party of China and the State Council, closely center on the urban strategic positioning of the Capital and the strategy of the coordinated development of Beijing-Tianjin-Hebei region, build a new system of open economy, further deepen the comprehensive pilot program of expanding opening-up in the service sector of Beijing Municipality, further explore the open mode of service sector, highlight the reform of systems and mechanisms for the service sector, accelerate the building of a basic framework for the opening-up of the service sector compatible with the international rules, and further enhance the development of the modern service sector and trade in service of Beijing, so as to make the comprehensive pilot program of expanding opening-up in the service sector of Beijing Municipality become an important practice of the state for promotion of the supply-side reform and all-around active opening-up and to contribute to the comprehensive deepening of reform and the exploration for the building of a new system of open economy.

III. The People's Government of Beijing Municipality shall strengthen the organization of and leadership to the implementation of the Plan, and under the principle of controllable risks, conduct meticulous organization, be bold in practice, highlight focuses, and make efforts to make new progress and breakthroughs in such aspects as the expansion of the market access to the service sector, the acceleration of the reform of systems and mechanisms, and the promotion of the building of auxiliary supporting systems.

IV. The relevant departments of the State Council shall, according to the division of duties and responsibilities, actively support Beijing Municipality in deepening the reform and promoting the comprehensive pilot program for expanding opening-up in the service sector, and first test certain important measures for reform and opening-up. The Ministry of Commerce shall, in conjunction with relevant departments, strengthen the guidance and coordinated promotion, and organize the supervision, inspection, and assessment, to ensure that various reform and opening-up measures of the Plan are implemented effectively.

V. During the period of the pilot program, the implementation of some provisions in relevant administrative regulations, documents of the State Council and departmental rules approved by the State Council shall be temporarily adjusted, and the State Council shall issue the specific adjustments separately. The relevant departments of the State Council shall, in accordance with the Plan, make corresponding adjustments to the rules and regulatory documents developed by them. The People's Government of Beijing Municipality and the Ministry of Commerce shall report any major problem encountered in the implementation thereof to the State Council for instructions in a timely manner.


Annexes:

1. Plan for Deepening the Reform and Promoting the Comprehensive Pilot Program of Expanding Opening-up in the Service sector of Beijing Municipality

2. A New Round of Opening-up Measures in the Comprehensive Pilot Program of Expanding Opening-up in the Service sector of Beijing Municipality


State Council

June 25, 2017


Annex 1

Plan for Deepening the Reform and Promoting the Comprehensive Pilot Program of Expanding Opening-up in the Service sector of Beijing Municipality


In May 2015, the State Council replied and approved to launch a three-year comprehensive pilot program of expanding opening-up in the service sector of Beijing Municipality. In the past two years, the comprehensive pilot program has been in service of the strategy of the coordinated development of Beijing-Tianjin-Hebei region and the building of a new system of open economy in the country. Focusing on reform and innovation and striving to create an environment, the pilot program has made new progress and breakthroughs in relaxing market access for the service sector, speeding up institutional and mechanism reforms, and promoting the construction of supporting systems, also facilitated the service sector to develop toward a high-end, modernized, agglomerated and international direction, with the internationalization level of the service sector and trade in service being continuously improved. This Plan is developed in order to further deepen the reform and promote the comprehensive pilot program of expanding opening-up in the service sector of Beijing Municipality.

I. General Requirements

The guiding principles of a series of important speeches and new concepts, thoughts and strategies of managing state affairs of General Secretary Xi Jinping shall be carried out in depth, the decisions and deployment of the Central Committee of the Communist Party of China and the State Council shall be conscientiously implemented, the philosophy of innovative, coordinated, green, open, and shared development shall be kept firmly in mind and put into practice, the urban strategic positioning of the Capital shall be based on, the national strategic layout for opening-up to the outside world  in a new era shall be served, the spirit of "Official Reply of the State Council to the Plan for Deepening the Reform and Promoting the Comprehensive Pilot Program of Expanding Opening-up in the Service sector of Beijing Municipality" (Letter of the State Council [2015] No. 81) shall be followed, so as to promote the supply-side reform of the service sector as guidance, expand the opening-up of the service sector in a broader field and at a deeper level, continue to strengthen the opening-up and development of the service sector and innovative development momentum, and improve the quality and benefits of service supply. The reform of "simplification of administrative procedures and decentralization of powers, combination of decentralization and appropriate control, and optimization of services" shall be further deepened, the innovation of the systems and mechanisms shall be promoted, the creation of an international, market-oriented and legal business environment shall be emphasized more specifically, the market vitality of the service sector shall be stimulated, the radiating and leading role of the pilot program of expanding opening-up in the service sector of the Capital shall be emphasized more specifically, so as to improve the capacity of the pilot program in serving the coordinated development of Beijing-Tianjin-Hebei region and the construction of the Xiong'an New Area, create a new highland for expanding regional opening-up and a new platform for foreign cooperation, and strive to accumulate new, replicable and extensible experiences for the opening-up of China's service sector.

II. Main Tasks and Measures

(I) Continuing to Relax Market Access Restrictions in Key Fields of the Service Sector

1. Further expanding opening-up of key fields of the service sector to the outside world. A new round of measures to expand opening-up of the service sector shall be rolled out. In the fields of scientific and technological services, foreign investment shall be allowed to enter the air transport sales agency industry, and the qualification requirements for foreign-funded construction and engineering design enterprises shall be relaxed. In the fields of cultural and educational services, foreign investors shall be allowed to invest in the production of audiovisual products in specific areas. In specific areas where the cultural and entertainment industry is concentrated, foreign investors shall be allowed to establish business entities of performance venues and entertainment sites without limits on investment proportion. In the fields of financial services, researches shall be carried out on allowing solely foreign-funded banks or China-foreign joint venture banks which are newly formed or formed after restructuring to apply for the RMB business at the same time when filing an application for business opening. In the fields of business and tourism services, the access threshold shall be further lowered for foreign investment in investment companies and talent intermediary agencies, and ways and mechanisms shall be explored for close cooperation in business between Chinese law firms and foreign, Hong Kong, Macao and Taiwan law firms. In the fields of healthcare and medical services, clinical trials in Beijing shall be allowed for eligible drugs which are researched and developed abroad.

(II) Continuing to Deepen the Reform of the Outbound Investment Administration System

2. Further promoting the overseas investment facilitation. The capable and eligible enterprises shall be supported to carry out real and compliant outbound investment activities. On the basis of implementing the management mode of filing supplemented with approval for overseas investment, the authenticity verification of overseas investment projects of enterprises shall be strengthened. Adhering to the principle of improving the efficiency of public services in the fields of overseas investment and accelerating the formation of a convenient business environment, the coordination among different government departments shall be enhanced to effectively prevent risks and perfect the collaborative service mechanisms for major overseas investment projects.

3. Promoting the extension of outbound economic cooperation in the service sector to a higher level. Multiple ways such as investment-driven project contracting and public-private partnership (PPP) shall be combined, so as to realize the transformation and upgrading of outbound contracted projects as well as the extension to the high end of the international industrial chain, drive technologies, products, equipment and services to go global, and promote major breakthroughs in the application of Chinese technologies and standards in overseas construction projects.

(III) Accelerating the Facilitation of Trade in Service.

4. Establishing a regulatory mode that adapts to the characteristics of new-type trade in service. The customs management mode and statistical system that are compatible with the characteristics of trade in service shall be studied and explored, the promotion of trade in digital products and trade in cultures shall be accelerated, and the integrated development of trade in service and trade in cargo shall be facilitated. The bonded policy shall be used fully to carry out the entry warehousing and display of cultural artworks within special customs supervision areas, so as to promote the exchange of Chinese and foreign cultures and arts. Credit management shall be imposed on business entities in the service sector, further simplification of the customs clearance and inspection process for medical devices and other special items of trade in service shall be explored, the application scope of the rapid inspection and release mechanisms in the fields of trade in service shall be extended, and the new and efficient pre-declaration quarantine and supervision modes shall be set up. The process of integrated customs clearance reform shall be accelerated, the means and methods of customs inspection shall be optimized and innovated, and the use of non-intrusive inspection and other means of facilitation shall be promoted. Intelligent customs clearance shall be promoted, and the rapid screening of high-risk passengers and checked baggage through information analysis shall be explored, so as to improve passenger customs clearance efficiency.

5. Exploring policy innovation in cross-border e-commerce. Innovations shall be made for the development of cross-border e-commerce under the current rule system. In cross-border electronic transactions, payment, logistics, customs clearance and other links, new ideas and measures shall be explored on technical standards, business processes, regulatory modes and information construction, and the utilization of the bonded import mode shall be promoted to carry out cross-border e-commerce business. The classified regulatory modes for cross-border e-commerce shall be explored, the pilot project for the integrated supervision and operation of bonded and tax-exempted goods shall be made, and the traceability system for the circulation of cross-border e-commerce goods shall be established, so as to realize the traceability of cross-border e-commerce goods throughout the whole process. The development and growth of cross-border e-commerce enterprises shall be supported actively, the establishment of cross-border e-commerce experience stores shall be promoted in urban areas, the overseas consumption return shall be attracted, and the integrated development of domestic and foreign trade shall be facilitated.

6. Perfecting port service functions. The construction of "single window" for international trade shall be promoted, the mode of paperless customs clearance and inspection shall be implemented comprehensively, and the cross-system and multi-department sharing of data which is declared by enterprises shall be facilitated. The endowed advantages of airport ports shall be brought into full play, researches shall be conducted on pilot projects of constructing city terminal buildings in places with matured conditions such as transportation hubs, and the safe, efficient, transparent and convenient trade in service comprehensive demonstration area with international advanced standards shall be created, so as to drive the rapid development of productive service industries such as aviation service sector. The new cargo transportation modes at the capital airport port shall be developed, the construction of customs multi-journey and multi-model combined transportation supervision center shall be explored, and the pilot project shall be carried out to transport goods without barriers between the capital airport and other ports, and among various transportation ways and among transportation means. The opening-up of Beijing Pinggu International Land Port to the outside world shall be promoted actively. The establishment of the market for transactions of agricultural and sideline products facing domestic and foreign markets shall be supported, and the demonstration for circulation network services that is in line with the international markets shall be formed. The port functions shall be displayed comprehensively, and the construction of trading markets for returned Chinese cultural relics from overseas shall be supported.The entry-exit green passage for cultural artworks shall be constructed.

(IV) Further Advancing the Innovation of Financial Management System

7. Accelerating the cross-border use of RMB. In order to meet the needs of the development of trade in service, the eligible non-financial enterprises shall be supported to use RMB at home and abroad as needed through the funds raised by cross-border issuance of RMB bonds or going public for financing. The channels for the returning of overseas RMB investment shall be extended, innovations shall be made to develop RMB financial products for the global markets, and the range of using overseas RMB to invest in domestic financial products shall be expanded. RMB settlement in cross-border e-commerce shall be expanded, and the Internet enterprises shall be allowed to carry out centralized cross-border RMB collection and payment services under current accounts. Under the premise of legal compliance, controllable risks and sustainable business, explorations shall be made to perfect the management ways of overseas RMB loans, and the banking financial institutions shall be supported to issue RMB loans for the overseas projects of enterprises. Insurance institutions shall be encouraged to make cross-border RMB business innovation and supported to carry out cross-border RMB reinsurance, and researches shall be conducted on insurance institutions conducting cross-border two-way RMB fund pool business. Studies on financial enterprises using cross-border two-way RMB fund pool to engage in centralized management and operation of global funds shall be conducted. The pricing and settlement of cross-border transactions in RMB shall be promoted, on the basis of making full use of the national financial infrastructure platform, the setting up a cross-border electronic transaction platform in the factors market shall be studied to provide overseas investors with financial factor transaction services priced and settled in RMB. Researches shall also be conducted on allowing qualified domestic individuals to carry out cross-border RMB business under current account and direct investment according to relevant regulations.

8. Deepening the reform of foreign exchange management system. The transformation of foreign exchange administration and use ways shall be explored, and the negative list administration modes shall be piloted. The headquarter enterprises of multinational corporations shall be supported in the centralized operation and management of foreign exchange funds.

9. Enriching the types of financial institutions and participating entities. Overseas central banks and international financial organizations shall be supported to set up representative offices or branches in Beijing, and financial institutions shall be encouraged to develop in Beijing. Foreign banks shall be encouraged to apply for RMB business licenses, the administrative licensing process shall be perfected, and the easy access for processing shall be established. Eligible small and medium-sized banks set up in Beijing shall be allowed to establish branches abroad in accordance with current policies and regulations.

10. Supporting the innovative development of new business forms of trade in service. Financial leasing companies and financing leasing companies in specific regions shall be encouraged to lease large-sized complete sets of imported equipment in the fields such as aircraft, biomedical research and development.

11. Enlarging economic strength of financial service entities. Support shall be provided to the establishment of overseas equities investment funds in Zhongguancun, and the cross-border investment which is carried out by insurance asset management, securities and futures, and other operating institutions which are entrusted by long-term funds such as insurance funds. The interaction mechanism among banking financial institutions, insurance institutions and equity investment institutions shall be explored, and the mechanisms of risk isolation, revenue sharing and risk sharing that are appropriate to the business nature and risk preferences shall be established. Securities and futures operation institutions shall be encouraged to carry out cross-border brokerage and cross-border asset management businesses in accordance with regulations, and participate in pilot projects for transactions of overseas securities and futures as well as derivatives. Eligible fund management subsidiaries shall be allowed to carry out businesses such as cross-border fund management and overseas investment consultancy, and securities and futures operation institutions shall be supported to carry out spot businesses of RMB against foreign exchange and businesses of derivatives. Rural small and medium-sized financial institutions with good regulatory ratings shall be supported to speed up the financial innovation, optimize the service ways, and improve the level of inclusive financial services.

(V) Improving the Incentive and Guarantee Mechanism for Foreign High-Level Talents

12. Perfecting the incentive mechanism for foreign talents. The identification and reward policies shall be improved for overseas high-level talents and talents in short supply that meet the development needs of key fields of opening-up in the service sector of Beijing Municipality. The incentive of granting certain subsidies to foreign talents working in Zhongguancun and accredited by the human resources and social security department and the competent department of foreign talents by the People's Government of Beijing Municipality shall be explored. The support provided for overseas talents in project application, achievement promotion and financing services shall be strengthened, foreign scientists and foreign experts shall be allowed or supported to lead or participate in major scientific and technological plans (projects) at the national and Beijing municipal level, and the system of foreign talents serving as legal representative of new-type public institutions for scientific research shall be explored.

13. Promoting accreditation of practicing qualifications and increase employment and entrepreneurship. The international mutual recognition of professional qualifications shall be explored, the restrictions on the employment of high-level and urgently needed foreign professionals in key fields of the service sector shall be relaxed, and the qualified foreign personnel shall be allowed to practice in Beijing and provide professional services. The approval process for foreign personnel to set up scientific and technological enterprises in Beijing shall be optimized, and the good environment for innovation and entrepreneurship shall be created.

14. Raising the level of social security for foreign talents. The multilingual and one-stop government service and social service website for foreign talents shall be established. The supply of medical services for foreigners shall be increased, the development of various forms of international medical insurance shall be encouraged. Efforts will also made to improve the level of medical services for foreign talents. Employers are encouraged to establish supplementary endowment insurance for foreign high-level talents in accordance with state regulations, the mechanism for the transfer and continuation of social security payment for foreign talents shall be explored, the docking of social security for foreign talents within the Beijing-Tianjin-Hebei region shall be promoted, and the foreign talents shall be allowed to withdraw the social security funds paid in Beijing upon returning the countries they are from at the end of their employment according to relevant regulations. By relying on the existing schools for children of foreign personnel, coordination shall be made to facilitate the admission of eligible children of foreign talents to schools. Measures shall be intensified to guarantee the housing for foreign talents, and eligible foreign talents shall be allowed to purchase commercial housing and handle property registration formalities in Beijing. A group of international talent communities shall be built, and the soft environment for foreign-related services shall be enhanced. The travel of foreign talents shall be facilitated, and eligible foreign talents shall be allowed to participate in the quota allocation of new energy vehicles.

(VI) Pushing Forward the Reform of the Market Access Management System

15. Deepening the reform of commercial registration system. The centralized handling of administrative approval of trade in service and service matters shall be explored, so as to realize "one-stop" acceptance and simultaneous processing of multiple certificates. The online handling of the whole process of industrial and commercial registration shall be explored, and the implementation of registration and approval mode of online handling supplemented by on-site handling shall be gradually guided. Trials shall be made to introduce the socialized service mode in which public service institutions undertake government service functions, and pilot projects shall be carried out in some regions to implement the services of integrating commercial subject registration agency window and enterprise business network, so as to pool service resources and extend the reach of services. The policies, such as the reform of name registration system and reform of business scope registration system which are independently declared by industrial and commercial registration applicants in the service sector, shall be gradually expanded to key fields of the service sector.

16. Continuing to push forward the reform of the investment management system. Simplification of administrative procedures and delegation of power to lower levels shall be accelerated, the approval authority for foreign investment shall be gradually decentralized, and trials shall be made to delegate the approval authority to lower levels for foreign-funded tourism projects (except for national scenic spots, national natural reserves, key cultural relic sites protected at the national level, and tourism development and resource protection projects in world natural and cultural heritage reserves).

(VII) Improving the Regulatory System and Regulatory Mode

17. Strengthening risk prevention and management. The establishment of the early warning mechanism for industrial safety in key fields of the service sector shall be explored. All kinds of credit information shall be fully used, and data analysis shall be made so as to collect various kinds of risk information of enterprises entities, and effectively implement risk prevention and management of enterprise entities.

18. Establishing the credit-based classified regulation mechanism. The local credit information sharing platform shall be built and improved, and its interconnection to the national credit information sharing platform shall be realized. The administrative license, administrative punishment and other information of relevant enterprises shall be published according to law through the national enterprise credit information publication system. On the premise of protecting personal privacy and business secrets, the application of credit information in the links of collection, sharing, use and disclosure shall be promoted. Classified regulation shall be implemented according to the principle of credit supervision and risk management, and the double-credit point management mode shall be implemented, so as to promote the construction of the new social governance mechanism combining enterprise autonomy, industrial self-discipline, social supervision and government regulation.

19. Promoting the development of the credit service sector. The development of the credit service industries such as credit consulting, credit evaluation, credit guarantee and credit insurance shall be encouraged. The credit rating institutions in Beijing shall be encouraged to connect with the international rating market, so as to actively participate in international competition and formulate international standards, and enhance the international influence of the rating institutions. Competitive credit service institutions shall be supported to participate in international cooperation, expand the international market, and provide services for enterprises to implement overseas mergers and acquisitions, international tendering and bidding, etc. The development of the credit rating market shall be regulated, the supervision and coordination as well as interim and post administration for rating institutions shall be strengthened, the exit mechanism for rating institutions shall be improved. The role of market force in restricting the behaviors of the rating institutions shall be strengthened, and the overall credibility of the credit rating industry shall be improved.

20. Advancing the application of credit service products. In aspects of economic regulation, market supervision, social governance, public services and industrial promotion, the credit reporting institutions shall be guided to strengthen credit service product innovation according to market demands. Policies and measures shall be studied and formulated for the use of credit information and credit reports in the tendering and bidding process of financial subsidies, government procurement, government's purchase of services and government's investment in construction projects, and the application of credit reports in the fields of administration and public services shall be further expanded. The credit management and service system shall be improved, the multi-level and diversified credit product and service system shall be fostered, the quality evaluation system of credit service products shall be formed, and the establishment of the system for purchasing third-party credit products and services shall be explored.

(VIII) Improving the Legal Guarantee System.

21. Improving the judicial guarantee system. The administrative and judicial protection of the service sector shall be improved, the administration according to law shall be strengthened, and the justice shall be administered strictly and impartially. The protection of trade and investment rights and interests shall be reinforced.The protection mechanism of intellectual property rights shall be improved. The supervision according to standards shall be enhanced, and the mandatory standards shall be strictly managed, and various market entities shall be encouraged to compete fairly.

22. Improving the diversified commercial dispute settlement system. The autonomy of market entities and industrial self-discipline shall be strengthened, and the roles of commercial associations and commercial dispute professional mediation institutions in the settlement of commercial disputes shall be brought into full play. The open, fair and transparent dispute settlement mechanism shall be established and improved. The world renowned commercial dispute settlement institutions shall be supported to set up representative offices in Beijing on the premise of meeting the overall requirements of the strategy of the coordinated development of Beijing-Tianjin-Hebei region. The market entities shall be encouraged to settle disputes through equal consultation, third-party mediation, commercial arbitration, litigation and other means, so as to promote the construction of the mechanism for diversified commercial dispute settlement.

(IX) Constructing the Open Spatial Layout of the Service Sector with Industrial Characteristics

23. Promote regional policy integration. In regions with mature conditions, by combining the development characteristics and industrial features, the public service platform which integrates regional policies, service functions, mode innovation, and achievement transformation as a whole shall be constructed firstly, so as to guide the service sector to make rational layout according to functional classification, promote pilot implementation and trial in key fields and links, and enhance the radiation and motivation of service sector development.

(X) Promoting the Coordinated Opening-up of Key Industries in Key Regions of Beijing-Tianjin-Hebei

24. Strengthening the connection of functions of Beijing-Tianjin-Hebei ports. The new mode of logistics connection between inland and coastal ports shall be innovated, and the new pattern of customs transit and clearance between Tianjin Port and Beijing Pinggu Land Port shall be explored, so as to improve the efficiency of customs clearance. The reform of integration of customs clearance and inspection shall be deepened, and the "single window" interconnection in Beijing, Tianjin and Hebei region shall be explored.

25. Pushing forward cross-regional integrated development of emerging industries. The cross-border e-commerce regulatory sites shall be planned scientifically, and the corresponding customs supervision, inspection and quarantine, cross-border payment, logistics, postal services, express delivery and other support systems shall be perfected, so as to create the comprehensive cross-border e-commerce service platform facing the Beijing-Tianjin-Hebei region and serving the whole country. The Beijing-Tianjin-Hebei e-commerce industrial park, cross-border e-commerce incubators, etc. shall be encouraged for connection to promote mutual assistance among enterprises and interactions among logistics and distribution networks.

26. Exploring the coordinated opening-up of the Beijing-Tianjin-Hebei industrial chain. According to the characteristics of the industrial development of the Beijing-Tianjin-Hebei region, the coordinated opening-up of the manufacturing industry and the service sector to the outside world shall be explored to accelerate the formation of the regional unified and opening-up market system.

27. Facilitating the free flow of factor resources. The time limit for 72-hour visa-free transit shall be extended to realize the interconnection of visa-free transit policies at relevant ports in the Beijing-Tianjin-Hebei region, and the foreign personnel shall be allowed to enter in and exit from different places.

28. Promoting the cooperation and co-construction of the Beijing-Tianjin-Hebei social credit system. By integrating the resources of Beijing-Tianjin-Hebei government departments, the cooperation and co-construction innovative demonstration in the aspects such as formulation of the credit system, establishment of the credit information sharing mechanism, promotion of the construction of credibility cultures, facilitation of the development of credit service market, construction of the credit reward and punishment interconnection mechanism, enhancement of the credit personnel training and education, and the establishment of the regional unified credit system and social credit reward and punishment interconnection mechanism shall be advanced, so as to jointly make the credible Beijing-Tianjin-Hebei brand, and create the good credit environment for the economic and social development of the Beijing-Tianjin-Hebei region.

III. Organization of the Implementation

Under the leadership and coordination of the State Council, the People's Government of Beijing Municipality has carefully organized the implementation according to its objectives and tasks, and has made solid progress in implementing the comprehensive pilot program for expanding opening-up in the service sector of Beijing Municipality. The relevant departments of the State Council shall, according to the division of duties and responsibilities, strengthen coordination and guidance, actively give support, closely follow up and supervise, form the joint force of facilitating opening-up and development, and promote the work to make actual achievements. The new situations and problems occurring in the expanded opening-up of the service sector shall be timely sorted out and studied, and the measures for the pilot program shall be continuously adjusted and optimized. The People's Government of Beijing Municipality and the Ministry of Commerce shall report any major problem encountered in the implementation thereof to the State Council for instructions in a timely manner.


Annex 2

A New Round of Opening-up Measures in the Comprehensive Pilot Program of Expanding Opening-up in the Service sector of Beijing Municipality


Key fields

Industries

Relevant provisions   on restricted or  prohibited projects

Legal basis

Measures for   opening-up

Scientific and technological services

Air transport industry

The scope of foreign investment in the civil   aviation industry includes civil airports, public air transport enterprises,   general aviation enterprises and air transport related projects.

"Provisions on Foreign Investment in   the Civil Aviation Industry" (Order No. 110 of the   former Civil Aviation Administration of China, the former Ministry   of Foreign Trade and Economic Cooperation, and the former State   Development Planning Commission)

Foreign investors shall be allowed   to invest in air transport sales agency enterprises.

Other construction industries

Where a solely foreign-funded   construction engineering design enterprise applies for the qualifications of   a construction engineering design enterprise, the number of foreign service providers   with qualifications of Chinese Certified Architect and Chinese Certified Engineer   shall not be less than 1/4 of the total number of certified     practitioners as provided in the standards for the classification of     qualifications. The number of foreign service providers with relevant   professional   design experiences shall not be less than 1/4 of the total   backbone   technicians as provided in the standards for the classification of     qualifications.

Where a China-foreign joint venture     or China-foreign cooperative construction engineering design   enterprise   applies for the qualifications of a construction   engineering design   enterprise, the number of foreign service providers   with the qualifications   of Chinese Certified Architect or Chinese   Certified Engineer shall not be   less than 1/8 of the total number of   certified practitioners as provided in   the standards for the   classification of qualifications. The number of foreign   service   providers with relevant professional design experiences shall not be     less than 1/8 of the total number of the backbone technicians as provided in     the standard for the classification of qualifications.

"Provisions on the Administration of   Foreign-funded Construction Engineering Design Enterprises" (Order No.   114 of the former Ministry of Construction and the former Ministry   of Foreign Trade and Economic Cooperation)

The requirements for proportion   of foreign technicians in foreign-funded construction engineering design     enterprises shall be canceled. 


Cultural and educational services

Radio, television, film, audiovisual   industry

Foreign investors are prohibited to   invest in the editing, publishing and production of audio and video products   and electronic publications.

"Catalogue for the Guidance of   Foreign Investment Industries (2017 Revision)"

Foreign investors shall be allowed   to invest in production of audio and video products (limited to carry out   cooperation in Beijing China Music Industry Park, China Beijing   Publishing Creative Industry Park, and Beijing National Digital   Publishing Base, and the Chinese side shall have control of the dominant   right on business operation and final decision-making power on the   contents.

Cultural art industry

Foreign investors may, jointly with   Chinese investors, establish China-foreign joint venture and China-foreign   cooperative performance brokerage institutions and performance venue business   institutions. No foreign investor may establish any China-foreign joint   venture, China-foreign cooperative or solely foreign-funded cultural and   artistic performance group, or establish any solely foreign-funded   performance brokerage institution or performance venue business institutions.

When establishing a China-foreign joint     venture performance brokerage institution or performance venue   business   institution, the investment proportion of the Chinese   party shall not be less than 51percent. When establishing a China-foreign   cooperative performance brokerage institution or performance venue business   institution, the Chinese party shall have the dominant right on business   operation.

"Regulations on the Administration   of Commercial Performances"

The special areas where cultural and entertainment industries   are gathered shall be selected, the foreign investors shall be allowed to   establish the performance venue business institutions, and   no restriction on the investment proportion shall be set up.

Cultural art industry

Foreign investors may work with Chinese investors   to establish China-foreign joint venture and China-foreign cooperative   entertainment venues according to law, but shall not establish solely   foreign-funded entertainment venues.

"Regulations on the   Administration of Entertainment Venues"

The special areas where cultural and entertainment industries   are gathered shall be selected, the foreign investors shall be allowed to   establish  the entertainment venues, and no restriction on the investment   proportion shall be set up.

Financial services

Banking industry

To engage in RMB business within the   scope of business specified in Article 29 or Article 31 of   the "Regulations of the People's Republic of China on the   Administration of Foreign-Funded Banks", a for-profit institution of a   foreign-funded bank shall open for business in the People's Republic of   China for more than 1 year before applying.

"Regulations of the People's   Republic of China on the Administration of Foreign-funded Banks"


Researches shall be carried out on allowing solely foreign-funded banks   or China-foreign joint venture banks which are newly   formed or formed after restructuring to apply for the RMB business at the same   time when filing an application for business opening.

Business and tourism services

Enterprise management services

The following conditions shall be met if applying   for establishing an investment company: 1. The foreign investor is   in good credit status, has the necessary economic strength to establish an   investment company, and has total amount of assets in the year   before the application being no less than USD   400 million; and it has   established a foreign-funded enterprise within the territory of   China, with the actual paid-up amount of registered capital being USD 10   million or more, or. 2. The foreign investor is in good credit   status, has the necessary economic strength to establish an investment company,   and has established 10 or more foreign-funded   enterprises within the territory of China, with the actual paid-up   amount of registered capital being USD 30 million or more.

"Provisions of the Ministry of   Commerce on the Establishment of Investment Companies   by Foreign   Investors" (Order No. 22 [2004] of the Ministry of Commerce)


The conditions for foreign investors to   set up investment companies shall be relaxed. The total amount of assets   of a foreign investor in the year before the application shall be reduced to   not less than USD 200 million, and the number of foreign-funded   enterprises established by the foreign investor within the territory of China   shall be reduced to five or more.

Legal services

Foreign investors are prohibited   to invest in consulting of China's legal affairs (except providing information for the   impact on China's legal environment).

"Catalogue for the Guidance of   Foreign Investment Industries (2017 Revision)"

Ways and mechanisms shall be explored for   close cooperation in business between Chinese law firms and foreign, Hong Kong,   Macao and Taiwan law firms.

Human resource service sector

The Chinese investor to the China-foreign   joint venture talent intermediary agency to be incorporated shall be a talent   intermediary agency having existed for 3 years or more, while the foreign   investor shall be a foreign company, enterprise or other economic   organization engaging in the business of offering talent intermediary   services for 3 years or more, and all investors shall have good   reputations; the contribution made by the foreign investor shall not be less   than 25 percent, and that by the Chinese investor shall not be less than   51 percent.

"Interim Provisions on the   Administration of China-foreign Joint Venture Talent Intermediary   Agencies" (Order No.2 of the former Ministry of Personnel, the   Ministry of Commerce, and the former State Administration for Industry   and Commerce, amended on May 24, 2005)

1. The   restrictions on the   proportion of foreign investment in China-foreign joint   venture talent   intermediary agencies in Zhongguancun shall be further relaxed.

2. The requirements that "Chinese   and foreign investors shall be talent intermediary agencies having   existed for 3 years or more" shall be canceled. 

3. Foreign investors shall be   allowed for direct investment in existing domestic talent intermediary   agencies.

Health and medical services

Development of medical research and trial

Where an overseas applicant intending to conduct   an international multi-center drug clinical trial in China, the drugs   used for clinical trials shall be already registered or in phase II   or III clinical trial overseas. 

"Provisions for Drug   Registration" (Order No. 28 of the former China Food and Drug Administration)

1. For new drug projects of great significance   developed abroad, after approval by the China Food and Drug Administration,   clinical trials shall be allowed in Beijing.

2. In accordance with the relevant regulations   on drug imports, the import of first-research reference drugs and in-research clinical   trial drugs shall be allowed, and clinical research drugs produced by   overseas research and development outsourcing enterprises   and  GMP manufacturers that comply with the regulations   on   drug production quality management shall be allowed to be used in international   multi-center clinical trials.


(All information in this document is authentic in Chinese. English is provided for reference only. In case of any discrepancy, the Chinese version shall prevail.)