China has eased regulations for foreign enterprises investing in free trade zones (FTZs), in a bid to improve the “negative list” approach and provide legal protection for reform.
The new policy will prove beneficial for investors in the sectors of shipping, aircraft manufacturing and rail transportation.
According to the policy, the authority has removed restrictions on the proportion of foreign ownership in shipping companies, which means wholly foreign-owned firms are allowed to set up establishment in FTZs of Shanghai, Tianjin, Guangdong and Fujian.
Besides, the proportion of foreign ownership in shipping agencies has been increased to 51 per cent. The regulation changes aims at attracting more foreign investments, industry sources said.
In 2016, authorities had already allowed the establishment of wholly foreign-owned ship management companies as well as cargo loading and unloading business.
Sea News, January 12