China Updates – September 2020
- Effective from 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.
- Ministry of Commerce revised and adopted the Rules on Handling Complaints of Foreign-Invested Enterprises.
- Shenzhen introduced a trial run of the “Enterprise Dormancy”.
- Beijing plans to further open up the service sector.
- The 128th Session of Canton Fair will be scheduled online from October 15th to 24th.
- Hainan Free Trade Zone implements the “negative list system” for work permit application.
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.
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 sets out detailed provisions on archive management, case reporting, regular inspections, proposals for the protection of interests, and rights, among other systems related to complaint handling.
Shenzhen introduced 36 measures to further improve the business environment and implement the trial run of the “Enterprise 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 “Enterprise 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.
Source: 优化营商环境36项措施出台 深圳试点商事登记行政确认制改革
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.
Source: 国务院关于深化北京市新一轮服务业扩大开放综合试点建设国家服务业扩大开放综合示范区工作方案的批复 国函〔2020〕123号
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 “negative list system” for work permit application.
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.