Pingtan Implements Pilot Foreign Investment Reforms
SHANGHAI – On June 3, the Pingtan Comprehensive Pilot Zone (PCPZ) released the “Catalog of Simplified Approval for Foreign Investment Access to the Pingtan Comprehensive Pilot Zone (2014)” and the “Interim Measures on the Administration of Foreign-invested Enterprises (FIEs) in the Pingtan Comprehensive Pilot Zone,” which took immediate effect.
Pingtan, located in Fujian province, is situated next to Taiwan and therefore enjoys unique advantages in cross-strait exchanges and cooperation. With high-tech and modern service industries introduced from Taiwan, the PCPZ aims at further development in the wind power, sea water desalinization and tourism sectors.
The PCPZ’s simplified approval catalog is the second instance of a negative list approach to foreign investment in China, following the success of that adopted for the Shanghai Free Trade Zone (FTZ). Under this approach, foreign investment is permitted in all sectors unless explicitly prohibited or restricted on the negative list. FIEs not listed in the simplified approval catalog will be regarded as domestic enterprises and treated as national citizens. The catalog, covering 15 industries and 106 items, gives the go-ahead for foreign investment in all sectors, especially for Taiwanese investors.
A complete version of the simplified approval catalog can be found here.
According to the Interim Measures, an FIE wishing to establish a business in the PCPZ is required to submit the following documents:
- Notice of enterprise name pre-approval;
- Permit for the use of the production and operations site;
- Application form for the establishment of an FIE in Fujian province;
- Articles of association for the FIE;
- A notarized and lawfully authenticated copy of the foreign investor’s personal identification or registration certificate;
- Credit certification of the foreign investor; and
- Nomination letter and a copy of the identity card of the directors of the board.
For joint ventures, a cooperation agreement signed by both parties must also be submitted.
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