at the beginning of opening to the outside world, some areas of China's service industry began to attract foreign investment. Jianguo Hotel, a Sino-US joint venture, is one of the first three foreign-invested enterprises approved in China. Since then, with the development of national economy, the field of service industry opening to the outside world is expanding day by day. At present, foreign investors have participated in most areas of China's service industry to varying degrees. By the end of 2111, the total contracted foreign investment in the tertiary industry centered on service industry was 268 billion US dollars, accounting for 35.97% of the total contracted foreign investment in China. In 2111, the extra amount of foreign capital actually used in service industry was US$ 11.411 billion, accounting for 24.35% of the total amount of foreign capital actually used in China. It is precisely because the China government actively, reasonably and orderly guided foreign businessmen to enter the service market in China that it promoted the rapid development of China's service industry. Next, I would like to focus on some basic information and policies on attracting foreign investment in banking, insurance, telecommunications, commercial retail and tourism in China.
1. Banks
China started the pilot work of attracting foreign investment in the banking sector in 1982. In 1995, with the approval of the State Council, the number of pilot cities for banks to absorb foreign capital was expanded from 13 to 24, and in 1999, it was expanded to all central cities in China. At present, foreign financial institutions can set up commercial financial institutions in all cities in China, and the investment forms include: branches of foreign banks, wholly-owned or joint-venture banks, wholly-owned or joint-venture financial companies and joint-venture investment banks. By the end of June 2112, there were ***167 foreign-funded financial institutions (excluding insurance) established by foreign investors in China, including 147 branches, 7 joint venture banks, 6 wholly-owned banks, 7 foreign-invested financial companies and 233 representative offices. In February, 1996, China began to allow foreign banks to conduct RMB business on a trial basis. By the end of 2111, there were 32 foreign banks approved by the People's Bank of China to engage in RMB business, including 26 in Shanghai and 8 in Shenzhen. At the end of 2111, the State Council promulgated the newly revised Regulations on the Administration of Foreign-funded Financial Institutions of the People's Republic of China and its Implementation Rules. The main amendments are as follows: foreign banks are allowed to conduct foreign exchange business in an all-round way without being restricted by regions and clients; Cancel the requirements of the current RMB business market access on the business scale and quantitative indicators set by foreign financial institutions; It is no longer required that the Chinese party to a joint venture bank or financial company must be a financial institution; The renminbi business will be gradually liberalized according to the time and region promised by China's accession to the WTO, and the restrictions on regions and clients will be completely lifted within five years.
II. Insurance
In p>1992, China began to conditionally open its insurance market, allowing foreign insurance institutions to set up insurance branches and joint venture insurance companies in Shanghai on a pilot basis. In 1995, the pilot area was expanded to Guangzhou. By the end of 2111, 29 foreign-funded insurance companies had set up 44 business institutions in China. Recently, Canada's joint venture insurance company Everbright Yongming and American International Assurance Company officially opened in Tianjin and Beijing respectively. Foreign-funded insurance institutions mainly carry out property insurance for domestic foreign-invested enterprises, credit insurance and liability insurance related to it, personal insurance paid by foreign individuals and reinsurance of the above businesses in China. At the end of last year, the State Council promulgated the Regulations on the Administration of Foreign-funded Insurance Companies, which came into effect on February 1 this year. This regulation defines the qualifications, establishment procedures, business scope and legal responsibilities of foreign investors investing in the insurance industry. The further opening-up of the insurance industry will be gradually implemented within 2-3 years after China's accession to the WTO in strict accordance with its commitments in the schedule of service trade concessions.
3. Telecommunications
Before China joined the WTO, telecommunications business was an area where foreign investment was prohibited by the state. After China's entry into the WTO, according to China's commitment to join the WTO, the telecommunications industry began to open to foreign investors step by step and with restrictions, and gradually relaxed the restrictions on areas, foreign investment ratio and business scope within five years after China's entry into the WTO. Therefore, in February, 2111, the State Council approved the Ministry of Information Industry and the Ministry of Foreign Trade and Economic Cooperation to jointly promulgate the Regulations on the Administration of Foreign-invested Telecommunication Enterprises, which clarified the conditions and procedures for foreign investors to set up telecommunication enterprises, and in the revised Catalogue of Industries for Foreign Investment in April, 2112, the prohibition on foreign investors to invest in telecommunication operations was abolished. March 22, 2112, at&; Shanghai Xintian Communication Co., Ltd., the first telecom operator in China, established by T Company, Shanghai Telecom Company and Shanghai Information Investment Co., Ltd., officially opened in Shanghai. It is believed that China's electric industry will achieve greater development under the impetus of foreign investment.
IV. Commercial Retail
In p>1992, the State Council decided to pilot 1-2 Sino-foreign joint venture commercial retail enterprises in Beijing, Tianjin, Shanghai, Dalian, Guangzhou, Qingdao and five special economic zones, and then decided to pilot 2 joint venture chain commercial enterprises in Beijing and Shanghai and several joint venture commercial retail enterprises with Taiwanese businessmen in the Mainland. On June 25, 1999, with the approval of the State Council, the State Economic and Trade Commission and the Ministry of Foreign Trade and Economic Cooperation jointly issued the Pilot Measures for Foreign-invested Commercial Enterprises, which expanded the pilot areas to all provincial capitals, autonomous regional capitals, municipalities directly under the Central Government, cities with separate plans and special economic zones, and clearly defined the qualifications of Chinese and foreign investors and the proportion of Chinese and foreign shares. At the same time, the state officially started the pilot of foreign investment in the wholesale industry.
so far, there are 49 joint venture commercial retail enterprises and 1 commercial wholesale enterprises approved by the state. The above-mentioned 49 enterprises * * * have set up 482 branches, with a total investment of 2.938 billion US dollars and a total registered capital of 613 million US dollars, of which the total registered capital of foreign parties is 514 million US dollars. Famous multinational chain enterprises in Europe and America, such as Wal-Mart, Metro, Auchan and B&Q, have invested and set up stores in China to carry out chain operations. Among them, Wal-Mart in the United States has set up 13 stores in China, Metro in Germany has set up 15 stores, Auchan in France has set up 4 stores, and B&Q in the United Kingdom has set up 12 stores.
at the same time, the relevant state departments are cleaning up and rectifying 277 foreign-invested commercial enterprises approved by local governments. At present, nearly 51 companies have completed the rectification work, and the rectification work of other enterprises is being carried out quickly.
in order to further promote the reform and development of domestic commercial enterprises and promote the construction of the domestic market, according to China's WTO accession commitment and the development plan of utilizing foreign capital in the commercial field, the relevant departments are working on revising the Interim Measures for the Administration of Foreign-invested Commercial Enterprises, which will be published soon. The new method intends to change the use of foreign capital in the commercial sector from pilot to normal opening, and will further relax the conditions for foreign investment access.
V. Foreign Trade
According to the regulations of China government, foreign businessmen can set up trading enterprises in Shenzhen Futian, Shatoujiao, Shantou, Xiamen, Haikou, Dalian, Tianjin, Qingdao, Zhangjiagang, Waigaoqiao, Ningbo, Fuzhou, Guangzhou and other bonded areas approved by the State Council, and engage in re-export trade in the bonded areas and import raw materials, spare parts and products for enterprises in the bonded areas.
in September, 1996, the Ministry of foreign trade and economic cooperation promulgated the "interim measures for the pilot establishment of sino-foreign joint venture foreign trade companies", which allowed the establishment of sino-foreign joint venture foreign trade companies in Pudong, Shanghai and Shenzhen special economic zones to handle the import and export business of commodities and technologies other than the export commodities jointly managed by the state organization and the zero imported commodities managed by the state approved companies, thus starting the pilot project of attracting foreign investment in China's foreign trade field.
At present, foreign-invested enterprises that are approved to engage in foreign trade import and export business and some foreign trade businesses mainly have the following forms:
1. Foreign-invested foreign trade companies
*** Five joint venture foreign trade companies have been established with the approval. Recently, the Ministry of Foreign Trade and Economic Cooperation is revising the pilot measures for the establishment of foreign trade companies with foreign investment, and plans to relax the conditions for establishment and cancel the geographical and quantitative restrictions of the pilot. The relevant modification plan has been reported to the State Council.
2. Foreign-invested companies
According to the Interim Provisions on the Establishment of Investment Companies by Foreign Investment promulgated by the Ministry of Foreign Trade and Economic Cooperation in 195 and the two supplementary provisions promulgated in 199 and 2111, investment companies established in China can sell the products produced by the enterprises they invest in by means of agency or distribution, and can purchase goods that do not involve export quota and export license management in China. Investment companies are allowed to purchase the products produced by the invested enterprises and sell them at home and abroad after system integration. If the products produced by the invested enterprises can not fully meet the needs of system integration, they are allowed to purchase supporting products for system integration at home and abroad, but the value of the purchased supporting products for system integration should not exceed 51% of the total product value required for system integration. At the same time, before the investment company's invested enterprise is put into production or the invested enterprise's new products are put into production, in order to develop the product market, the investment company may be allowed to import a small number of products from its parent company that are the same as or similar to those produced by the invested enterprise for trial sale in China.
3. Foreign-invested production enterprises with an annual export value of more than USD 11 million
According to the Circular on Issues Related to Expanding the Import and Export Management Right of Foreign Investment issued by the Ministry of Foreign Trade and Economic Cooperation in 2111, qualified foreign-invested production enterprises can engage in non-quota license management, purchase and export of non-franchised goods, and participate in the export quota bidding of their own products. According to statistics, at present, there are 2173 foreign-invested enterprises with export value exceeding 11 million US dollars, with total export value of 85.782 billion US dollars, accounting for 64.4% of the total export value of foreign-invested enterprises (133.235 billion US dollars).
in addition, according to the current pilot measures for foreign-invested commercial enterprises, foreign-invested commercial enterprises can also engage in the procurement and export of domestic products and the import and export of self-operated commodities; According to the Notice on Issues Related to Expanding the Import and Export Operation Right of Foreign Investment, a foreign-invested R&D center can import and sell a small number of high-tech products produced by its parent company for market testing of its R&D products.
VI. Tourism
Before p>1998, China was only allowed to set up Sino-foreign joint venture travel agencies in national tourist resorts. According to this regulation, the China Municipal Government approved the establishment of the first Sino-foreign joint venture travel agency-Yunnan Litian Travel Co., Ltd.. At the end of 1998, the Ministry of Foreign Trade and Economic Cooperation and the National Tourism Administration jointly promulgated the Interim Measures for the Pilot of Sino-foreign Joint Venture Travel Agencies, which further expanded the opening up of travel agencies and changed the previous situation that foreign investors could only set up joint venture travel agencies in 12 national tourist resorts. In October 2112, the State Council promulgated the Regulations on the Administration of Travel Agencies, which further lowered the registered capital standard of joint venture travel agencies (the minimum registered capital of foreign-invested travel agencies is RMB 4 million) and cancelled the requirement that a foreign investor can only set up one travel agency. As long as both Chinese and foreign parties meet the conditions stipulated in the Regulations on the Administration of Travel Agencies, they can apply for the establishment of a joint venture travel agency to operate inbound tourism and domestic tourism. At the same time, the Ministry of Foreign Trade and Economic Cooperation is also studying and formulating relevant policies, preparing to pilot in some areas in advance, allowing foreign investors to set up wholly-owned travel agencies. So far, China has approved 11 foreign-invested travel agencies.
VII. Transportation and International Freight Forwarding
At present, China has approved the establishment of more than 711 Sino-foreign joint road transport enterprises. The Ministry of Foreign Trade and Economic Cooperation and the Ministry of Communications promulgated the Regulations on the Administration of Foreign-invested Road Transportation in October, 2111, which clearly stipulated the establishment conditions and approval procedures of foreign-invested road transportation companies (passenger transport and freight transport).
In terms of waterway transportation, at present, China has approved the establishment of more than 61 Sino-foreign joint venture shipping enterprises engaged in domestic coastal and inland river transportation and more than 61 Sino-foreign joint venture shipping enterprises engaged in international shipping. At the end of 2112, the State Council promulgated the Regulations of the People's Republic of China on Maritime Transport, which stipulated in principle the foreign investment in international maritime transport and its auxiliary business.
in the field of air transport, the state recently promulgated the Interim Provisions on Foreign Investment in Civil Aviation, which further relaxed the conditions for foreign investment in civil aviation. By the end of 2111, foreign investment in the civil aviation industry had reached 421 million US dollars, and 64 enterprises had been established.
in the field of international freight forwarding, at the end of 2111, the Ministry of Foreign Trade and Economic Cooperation promulgated the Regulations on the Administration of Foreign Investment in International Freight Forwarding Industry. According to this regulation, foreign businessmen can set up joint-venture international freight forwarding enterprises in China, and are allowed to set up wholly-owned international freight forwarding enterprises within three years as promised by China's entry into WTO. At present, China has approved the establishment of more than 311 foreign-invested international freight forwarding enterprises, which have set up nearly 211 branches in other cities in China.
VIII. Accounting Services
In order to promote the gradual establishment and healthy development of China's CPA system and narrow the gap between China's accounting and auditing industries and international counterparts, since 1992, China has conditionally allowed internationally renowned accounting companies to cooperate with Chinese accounting firms to set up accounting firms. At present, China has approved the establishment of nine Chinese-foreign cooperative accounting firms. These accounting firms can provide corresponding services for domestic and foreign enterprises within the prescribed business scope. In addition, China also allows foreign accounting firms to invest in China and set up six member firms and four development liaison firms. At present, the relevant departments are studying to allow foreign accountants who have obtained the qualification of certified public accountants in China to set up partnership accounting firms with certified public accountants in China, and are preparing to formulate relevant regulations on foreign-invested accounting firms, clarify the forms and approval procedures of foreign-invested accounting firms, and standardize foreign investment in this field. We will actively introduce well-known foreign accounting firms into China's accounting service market to promote the integration of China's accounting firms with foreign countries.
IX. Legal Services
At present, foreign investors are not allowed to set up law firms in China. However, with approval, foreign and Hongkong law firms can set up representative offices in China to carry out related business excluding legal affairs in China. There are now 111 such representative offices.
after China's accession to the WTO, the State Council promulgated the Regulations on the Administration of Representative Offices of Foreign Law Firms in China in 2111, which cancelled the geographical and quantitative restrictions on the establishment of the original representative offices as promised by China's accession to the WTO, and allowed foreign law firms to set up multiple representative offices in the territory where they are located.
in addition to the above-mentioned service fields, assets appraisal, publishing, printing, construction, real estate and property management, audio-visual products, catering and entertainment, maintenance, consulting, advertising, medical treatment, education, leasing, commodity inspection, engineering design and other fields have been opened to foreign investors to varying degrees, and all areas with restrictions on foreign investment access have formulated corresponding laws and regulations. China has established a legal system for foreign investment access in service industries. It can be seen that the opening-up of China's service industry has developed from a few fields and departments to many fields and departments, basically forming a new pattern of overall opening-up.
during the tenth five-year plan period, we will continue to actively, steadily and orderly promote the overall opening up of the service industry in accordance with the principle of "developing modern service industry and reorganizing and transforming traditional service industry" and the commitment of China's accession to the WTO. It is necessary to combine the absorption of foreign capital with the structural adjustment of China's service industry; It is necessary to encourage and correctly guide foreign investors to engage in modern logistics distribution and chain operation; Actively promote the opening up of tourism; Relax restrictions on foreign investment in accounting, law, management consulting, engineering consulting and other intermediary services; Explore and try to absorb foreign capital to develop social undertakings such as medical care and education.