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China Update – September 2020

Entry by Foreign Nationals Holding Valid Chinese Residence Permits of Three Categories

Effective from 0 am., 28 September 2020, foreign nationals holding valid Chinese residence permits for work, personal matters, and reunion are allowed to enter China with no need for applying for new visas. If the above three categories of residence permits held by foreign nationals expired after 0 am, 28 March 2020, the holders may apply for relevant visas by presenting the expired residence permits and relevant materials to the Chinese embassies or consulates on the condition that the purpose of the holders’ visit to China remains unchanged. The above-mentioned personnel shall strictly abide by the Chinese regulations on epidemic prevention and control.

Other measures in the Announcement issued on 26 March will continue to be implemented. While ensuring effective epidemic control, the Chinese government will continue resuming people-to-people exchanges in a step-by-step and orderly manner.

Source: https://www.fmprc.gov.cn/mfa_eng/wjbxw/t1817370.shtml


Ministry of Commerce revised and adopted the Rules on Handling Complaints of Foreign-Invested Enterprises

Ministry of Commerce revised and adopted the Rules on Handling Complaints of Foreign-Invested Enterprises, which shall come into force as of 1 October 2020.

The Rules stipulate that foreign-invested enterprises or foreign investors can apply to the agencies handling complaints about coordination to resolve matters when they think the administrative actions have infringed their legitimate rights and interests.  To ensure all complaints are handled properly, the Rules set out detailed provisions on archive management, case reporting, regular inspections, proposals for the protection of interests, and rights, among other systems related to complaints handling.


Shenzhen introduced 36 measures to further improve the business environment and implement the trial run of the €œEnterprise Dormancy€.

On 20 Aug 2020, the Market Supervision Administration of Shenzhen announced 36 service measures in six aspects in order to further optimize the business environment of the city.

One of the highlights of these 36 measures is the trial run of the €œEnterprise Dormancy€ system, where companies are allowed to apply for “dormant status” according to the actual needs of production and operation. During the “dormancy” period, they will not be identified as an abnormal business if they cannot be contacted at their registered domicile. Before the expiration of the “dormancy” period, they can independently apply for the restoration of normal operation status.


Beijing to further open up the service sector

Beijing plans to further open its services market to foreign investors in several areas including 26 segments of the financial sector. Here are some examples:

Foreign investors are allowed to invest in domestic virtual private network business (the proportion of foreign shares shall not be more than 50%), and overseas telecom operators can set up joint ventures to provide VPN services.

Foreign investors are encouraged to invest in adult education and training institutions, and set up for-profit vocational skills training institutions, and cultivate more international and professional talents.

Priority will be given to multinational corporations to set up wholly-owned finance companies. Foreign companies are supported to apply to be private fund managers and develop equity investment and asset management business.


The Ministry of Commerce: the 128th Session of Canton Fair scheduled online from October 15th to 24th

China will hold the 128th session of the China Import and Export Fair, also known as the Canton Fair, online between Oct 15 – 24. This is the second online session of the fair due to the COVID-19 epidemic.


Hainan Free Trade Zone implements the €œnegative list system€ for work permit applications

The work permit for foreign nationals in Hainan free Trade Zone is subject to the negative list administration, which means that foreign nationals outside the negative list are not restricted to work in Hainan Free Trade Zone.

Foreign high-level talents who work in Hainan Free Trade Zone may directly work in Hainan Free trade Zone part-time, or start up their own businesses with the consent of the employer and after filing with the relevant government departments.



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