BEIJING – China has updated its rules on foreign investment in its free-trade zones, cutting 27 restrictions across eight sectors to boost the inflow of foreign capital, state-run news agency Xinhua reported on Saturday.
The banking, manufacturing and mining sectors are among those that will be affected by the move, which was taken on Friday.
Banks will now be allowed to underwrite government bonds and will no longer have to wait for a minimum period of operation to launch renminbi services.
In the manufacturing sector, the new rules will benefit foreign manufacturers of electric vehicles and rail transport equipment, who wish to set up their own facilities instead of entering into joint ventures with local firms.
According to the news agency, the original list of measures for China’s FTZs was published in 2013 with a total of 190 restrictions and has since been revised to 139 restrictions in 2014, 122 in 2015 and 95 in the latest amendment.
Free-trade zones are a special economic zone where foreign products can legally enter and be manufactured and then exported without interference by the customs authorities of the country in which they are located.