As of July 1, domestic and foreign trading companies in China will no longer need to seek government approval to engage in foreign trade. The newly revised foreign trade law, which goes into effect on Thursday, abolishes much of the red tape that hindered operations in the past.
According to the revised law, a legally registered company needs no special official permission to engage in foreign trade. Previously, companies had to obtain licenses from various government departments before they could do so, and a number of official requirements had to be satisfied before licenses were awarded.
In accordance with China’s World Trade Organization commitment to liberalize foreign trade in 2004, the new law states that companies can engage in foreign trade after registering with the government.
The new law also permits individual citizens to conduct foreign trade after they complete certain legal procedures.
(Xinhua News Agency June 30, 2004)
