The Chinese government will lift restrictions on foreign investment for 27 businesses, ranging from shipping to manufacturing, in the Shanghai Pilot Free Trade Zone (FTZ).
A foreign investor will be allowed to own a controlling stake in a joint-venture shipping agency in the FTZ, with the investment cap raised from 49 to 51 per cent, according to a State Council statement published on Sunday.
Foreign investors will be allowed to engage in salt wholesaling in the 29 sq km zone. They can also engage in producing traditional Chinese tea through a joint venture with Chinese firms.
Foreigners can set up solely-owned firms for cargo handling and management of container yards. The current regulation only permits Chinese-foreign joint ventures.
Restrictions are also eased for the manufacturing of some transport facilities. Solely-owned foreign firms can conduct business in sectors including research and development of facilities for high-speed railways, development and manufacture of parts of civil aircraft engines, constructing and managing of local railways, ferries, bridges and tunnels.
Some 12,000 firms have been set up in the FTZ since its launch in late September last year.
The Chinese financial hub has promised free trade, greater financial opening and fewer government controls in business activities.
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