The Chinese government has been authorized to ease investment rules in three new free trade zones (FTZs) after top legislature gave the go ahead during a bi-monthly meeting on Sunday.
The new zones will be located in south China's Guangdong Province, southeast China's Fujian Province and north China's Tianjin Municipality. The only FTZ currently operating is in Shanghai.
The resolution on temporary adjustment of regulations for administrative approvals in the new FTZs was passed through a vote at the bi-monthly session of the National People's Congress (NPC) Standing Committee.
According to the resolution, foreign companies will not need government approvals to set up ventures in these FTZs, shut down and merge ventures or change their business purpose. Instead, they will only need to report business plans to the authorities.
These preferential policies conflict with 12 articles out of four laws on foreign companies, Sino-foreign joint ventures and Taiwan investors so the legislature authorized the State Council to adjust the implementation in the FTZs.
The temporary adjustment will begin in March next year and will last for three years, according to the resolution.