2018-01: Decision of the State Council on Temporary Adjustment of Relevant Administrative Regulations, State Council Documents and Departmental Rules Approved by the State Council in the China (Shanghai) Pilot Free Trade Zone 

The State Council has temporarily adjusted certain laws and regulations in the free trade zone.

■The establishment of wholly foreign-owned entertainment venues is permitted.

■The free trade zone will now allow the establishment of wholly foreign-owned international shipping, international ship management, international cargo handling, international shipping container stations and yard enterprises.

It will allow foreign investors to engage in the international shipping agency business in the form of joint ventures or cooperation. The foreign shareholding ratio will be relaxed to 51 percent.

■In the field of aviation, foreign investors are allowed to invest in air transport sales agency enterprises and air cargo warehousing, ground services, aviation food and parking lot projects in a sole proprietorship.

Restrictions on foreign-invested general aircraft maintenance that should be controlled by the Chinese side are relaxed. The obligation of foreign-invested aircraft maintenance to undertake international maintenance market operations is removed. The competent civil aviation authority under the State Council shall formulate relevant management measures.

Foreign investors are allowed to engage in the design, manufacture and maintenance of general-purpose aircraft of six tons and under nine seats in the form of sole proprietorship. The investment ratio limit for the design and manufacture of civilian helicopters of three tons and above is eliminated. 

■In the area of rail transit, the restriction that the proportion of localization of foreign-invested urban rail transit project equipment must reach a limit of more than 70 percent is removed. 

■Foreign enterprises are allowed to engage in the construction and operation of gas stations in the free trade zone in the form of sole proprietorships. 

■In the area of Internet information services, foreign investors are allowed to invest in Internet access service business premises.

■In the area of agriculture, the restrictions on foreign companies engaged in the acquisition of rice, wheat and corn on a wholesale basis are eliminated.

■In the area of finance, the previous regulations required that foreign-funded banking business institutions should operate in China for more than one year before applying for RMB business. Article 15 of the Decision cancels that provision.