News
At a time of the first anniversary of the China (Shanghai) Pilot Free Trade Zone (FTZ), China's State Council has unveiled a plan to relax foreign investment restrictions in 27 industries including, among others, international shipping and civil aviation sectors in a bid to encourage broader market access for foreign companies.
With immediate effect, the foreign ocean shipping industry is now allowed to create a wholly-owned company in the FTZ for cargo handling and management of container yards and container freight stations. Currently, such business is only allowed in the form of a joint venture with Chinese partners.
The Chinese-foreign joint venture shipping agency business in the FTZ is also allowed a share of foreign investment of 51% or more instead of the existing cap set at 49%.
In the civil aviation sector, foreign enterprises are now permitted to set up a wholly-owned firm for air cargo agent business in the FTZ.
