Recently, the State Council has released the Circular on Several Measures concerning the Expansion of Opening-up and Active Use of Foreign Capital (the "Circular").
The Circular sets out the need of further expanding opening-up, creating a market environment of fair competition, and redoubling efforts to attract foreign investment. The Circular clearly states that the Catalogue for the Guidance of Foreign Investment Industries and other related policies and regulations will be amended to relax the restrictions imposed on the foreign access to the service sector, manufacturing sector, mining sector and other sectors. In particular, for the service sector, focus will be laid on relaxing limits on foreign access to banking financial institutions, securities companies, securities investment fund management companies, futures companies, insurance institutions and insurance agencies, while the limits on foreign access to accounting, auditing, architectural design, rating service and other fields will be lift; and other sectors such as telecommunications, internet, culture, education, and transportation will be opened up in an orderly manner. In terms of the manufacturing sector, attention will be paid to the elimination of restrictions previously imposed on foreign access to the manufacturing of railway transportation equipment, manufacturing of motorcycles, production of fuel ethanol, processing of grease and other fields.