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China Amends Laws to Reduce Red Tape – What Foreign Investors Need to Know | Dezan Shira & Associates

posted 2 years ago

On April 7, 2022, the State Council issued an order to amend 14 and abolish six sets of administrative regulations across a wide range of industries in order to further cut red tape for companies and help stimulate market activity. The changes will take effect from May 1, 2022.

The order forms a part of China’s reform push to “separate operation permits and business licenses”, which reviews existing laws and regulations to: 1) reduce bureaucratic procedures for businesses by abolishing approval requirements, 2) optimize market access services, and 3) base certain approval procedures on “informed commitment” rather than inspections, among other measures.

The affected regulations cover foreign investment in the telecommunications industry, medical institutions, customs inspection, transport, internet access services, and many more.

We provide an overview of the legal changes that may benefit foreign investors in China.



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