FDI: China Issued First Hainan Overseas Services’ Negative List

I. Legal News:

The Ministry of Commerce issued the Special Administrative Measures (hereinafter referred to as “Negative List”) for Cross-border Trade in Services in Hainan Free Trade Port for implementation from August 26, 2021¹.

These measures include 11 categories, covering 70 special measures, and for areas not included in the Negative List, domestic and overseas service providers will be treated equally and enjoy equal market access in Hainan Free Trade Port.

11 categories and corresponding number of special measures are detailed as follows:

I Agriculture, forestry, animal husbandry and fishery (1)

II Construction industry (1)

III Wholesale and retail (2)

IV Transportation, storage and postal (13)

V Information transmission, software and information service (6)

VI Financial services (17)

VII Rental and business services (12)

VIII Scientific research and technical services (4)

IX Education (2)

Ⅹ Health and social work (1)

XI Culture, sports and entertainment (11)

Hereunder are a few outstanding examples:

http://www.mofcom.gov.cn/article/zwgk/zcfb/202107/20210703180049.shtml

II. Hot Topic:

The General Office of the Central Committee of the Communist Party of China and the General Office of State Council have recently distributed the Opinions on Further Easing the Burden of Excessive Homework and Off-campus Tutoring for Students Undergoing Compulsory Education (hereinafter referred to as “the Opinions”). We list the following highlights of the Opinions:

(1) Curriculum subject-tutoring institutions shall be prohibited from listing or financing. It means that these institutions are prohibited from going public for financing or conducting any capital-related activities, and investment in these institutions by any listed companies shall also be prohibited.

(2) Any new curriculum subject-tutoring institutions training students under China’s nine years of compulsory education will no longer be approved by local authorities.

(3) All existing curriculum subject-tutoring institutions are requested to be registered as non-profit institutions.

(4) Online curriculum subject-tutoring institutions are not allowed to hire foreign teachers outside China.

(5) Curriculum subject-tutoring institutions are not allowed to occupy national statutory holidays and winter and summer holidays to organize training.

The Opinions will be implemented in nine cities² first and then gradually to be implemented nationwide.

http://www.gov.cn/zhengce/2021-07/24/content_5627132.htm

As always, Asiallians remains at your service and our teams are currently mobilized in all our offices in Mainland China, Hong Kong and Taipei.

1. Different from the National Negative List focusing on restrictions of incorporation of enterprises, the Overseas Services’ Negative List focuses on cross-border trade in services.

2. Beijing, Shanghai, Shenyang, Guangzhou, Chengdu, Zhengzhou, Changzhi, Weihai, Nantong.

Feel free to contact asiallians@asiallians.com for more information.