Recently, the State Council of the PRC released an approval on temporary adjustments to administrative regulations and departmental rules approved by the State Council in six pilot cities, which announced further opening up of service sector in Shenyang, Nanjing, Hangzhou, Wuhan, Guangzhou and Chengdu starting from 11 July 2024. The details are as follows:  

1. Foreign investors are allowed to establish Sino-foreign non-profit medical institutions in Shenyang, Wuhan, Guangzhou and Chengdu to provide basic medical and health services.
   
   
2. Foreign investors are allowed to establish non-profit eldercare institutions in Hangzhou, Guangzhou, and Chengdu. Those who meet the conditions can be register as private non-enterprise entities in accordance with the law.
   
   
3. Foreign investors are allowed to set up qualified travel agencies in Shenyang, Nanjing, Guangzhou, and Chengdu to engage in outbound tourism business excluding the Taiwan region.
   
   
4. The domestic internet virtual private network services will be opened to foreign investment (foreign shareholding shall not exceed 50%) in Shenyang, Nanjing, Hangzhou, Guangzhou, and Chengdu. Attracting overseas telecommunications operators to establish joint ventures to provide domestic internet virtual private network services for foreign invested enterprises in Shenyang, Nanjing, Hangzhou, Guangzhou, and Chengdu.
   
   
5. Restrictions on the foreign shareholding of value added telecommunications services, include information service businesses (limited to APP stores and excluding areas prohibited for foreign investment) and internet access services (limited to providing users with internet access), are lifted in Shenyang, Nanjing, Hangzhou, Guangzhou, and Chengdu.
   
   
6. The approving authority for foreign investors as well as investors from the Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan Region to apply for entertainment venues business activities is delegated to the cultural authorities of the people’s governments of Nanjing, Hangzhou, Wuhan, Guangzhou and Chengdu.
   
   
7. The approving authority for foreign investors as well as investors from the Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan Region to establish performance venue operating entities and performance brokerage institutions is delegated to the cultural authorities of the people’s governments of Nanjing, Hangzhou, Wuhan, Guangzhou and Chengdu.
   
   
8. The approving authority for performance groups and individuals from foreign countries, Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan region to participate in commercial performances is delegated to the cultural authorities of the people’s governments of Nanjing, Wuhan, Guangzhou and Chengdu.
   
   
9. Foreign investment is allowed to engage in social surveys in Guangzhou. But the Chinese party’s shareholding shall not be less than 67% and the legal representative must have Chinese nationality.

KAIZEN Group is equipped with experienced and highly qualified professional consultants and is therefore well positioned to provide professional advices and services in respect of the formation and registration of company, application for various business licences and permits, company compliance, tax planning, audit and accounting in China. Please call and talk to our professional consultants for details.