The State Council published a policy on
Jan 9 to encourage investment from more foreign enterprises into
Shanghai's Free Trade Zone (FTZ).
The new policy has made several changes
on the previous ones including in aspects of aircraft industry,
entertainment industry, financial industry, tourism, education and rail
One of the major changes is that the new
policy has removed the restriction of investment from foreign
enterprises, in areas such as the industry of shipping, aircraft
manufacturing and rail traffic.
In sea transportation, wholly foreign-owned enterprises that are doing
the business, such as shipping, ship management, cargo handling, marine
container and storage, will be allowed to be established at FTZ. Foreign
enterprises are allowed to do businesses as international shipping
agency in the form of joint ventures and cooperation. In addition, the
allowed shareholding ratio has been lifted to 51 percent.
In aviation, foreign enterprises are
permitted to carry out work such as selling inflight meals, establishing
parking lots, and storing goods in the form of sole proprietorship. The
foreign enterprises are spared the obligation of having to maintain the
airplanes at the global market if the enterprises invest in airplane
Foreign enterprises are also permitted
to design, manufacture and maintain the general-purpose planes which
weigh six tons and hold no more than nine seats in the form of sole
proprietorship. The investment restrictions of designing and
manufacturing helicopters for civil use weighing more than three tons
have been removed.
In rail traffic, the requirement that
over 70 percent of the foreign invested railway transportation project
have to be domesticized has been removed.
Foreign enterprises have long been
restricted to establish and manage the petrol station, while due to the
launch of the new policy, foreign enterprises are permitted to build and
manage petrol station operations.