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By Christine Gaylican, Opalesque Asia:
To further bolster the economy and entice more foreign capital, the State Council of the People's Republic of China (PRC) has recently given the stamp of approval on new laws allowing foreign companies to directly set up subsidiaries in mainland provinces and its adjoining states.
Foreign companies could be registered as partnership companies rather than be limited as advisory offices or representative offices currently allowed in the mainland, Hong Kong, Taiwan, and in Shanghai.
According to China's Minister of Commerce Chen Deming, the country will gradually reduce limits on equity stake proportion in investment from overseas companies, allowing qualified foreign-invested enterprises to list in the country's stock market. (Source).
He mentioned this development during the 13th China International Fair for Investment and Trade (CIFIT) in Xiamen, Southeastern Fujian Province without saying when it will take effect.
The PRC has approved in principle the latest draft of regulations that would soon implement the so-called Administrative Measures for the Establishment of Partnership Enterprises by Foreign Entities or Individuals in China, also referred to as the Draft FIP Regulations.
Government approvals still necessary
The State Council has asked the Ministry of Commerce (MO...................... To view our full article Click here
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