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CN to Relax Entry Restrictions on Domestic & Foreign Capital, Deploy Mkt Access System for New Industries & New Fields
The General Office of the Chinese Communist Party and the General Office of the State Council released an opinion on improving the market access system, mentioning that it is neces...
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CN to Relax Entry Restrictions on Domestic & Foreign Capital, Deploy Mkt Access System for New Industries & New Fields
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The General Office of the Chinese Communist Party and the General Office of the State Council released an opinion on improving the market access system, mentioning that it is necessary to strengthen the synergy and coordination of the policies on the access of domestic and foreign capital.

On the premise of not jeopardizing the access opportunities of existing business entities, the principle of national treatment will be adhered to. If access restrictions are liberalized for foreign capital, they will be liberalized for domestic capital. If access thresholds are set for domestic capital, they will be applied to foreign capital, provided that they do not contravene international agreements and commitments. It encourages conditional places such as the Hainan Free Trade Port and the Pilot Free Trade Zone to explore safer, convenient, and efficient modes of synergizing the access of domestic and foreign capital.

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The opinion mentions that market access rules should be determined in a scientific manner, and that they should be implemented for lenient entry but stringent regulation, with access to fully competitive areas being liberalized, restrictions on the access of business entities being substantially reduced, and access restrictions on the service sector being relaxed in an orderly manner.

The Opinion also proposes to focus on new industries and new fields such as deep sea, aerospace, aviation, life and health, new energy, artificial intelligence, autonomous and trustworthy computing, information security, intelligent rail transportation, and modern breeding industry, while formulating implementation plans for optimizing the market environment in different fields in accordance with the principles and paths of standard-led, scenario-opening, market-driven, industry-aggregation, and system upgrade, in a bid to promote the innovative allocation of factors of production and improve the efficiency of access.

At the same time, the scope of monopoly business and competitive business conducted by enterprises operating in natural monopoly segments will be regulated, so as to prevent the enterprises concerned from taking advantage of their monopoly to extend to upstream and downstream competitive segments or to exclude or restrict market competition in those segments. The supervision of entry into the financial industry will be strengthened. With the forward-looking deployment of the market access system for new industries and new fields, the development of new quality productivity can be better promoted.

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