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Foreign Firms Go Through New Licensing Procedures

The requirements for business licences for foreign-funded enterprises will be changed next year, the State Administration for Industry and Commerce announced Wednesday.

Also, enterprises will not be required to renew their licences annually, the practice that applies at present.

In line with this change, enterprises must renew their licences during the period running from January 1 to June 30, 2001, and old licences will become invalid after January 1, 2002.

"This change in licensing practices reflects adaptations made to conform with World Trade Organization (WTO) rules," said Wang Lingjun, vice-director of the Enterprise Registration Bureau of the administration.

Current business licences for foreign-funded enterprises are quite different from those for domestic enterprises. On top of this, the regulations applying to the licensing of foreign and domestic enterprises, especially the registration procedures are also different.

This contravenes WTO rules, which prescribe that foreign-funded enterprises enjoy the same treatment as domestic ones.

With China's entry into the WTO impending, the administration is initiating licensing changes, and the actual issuance of new licences is only one of the changes that will be made.

The new business licences for foreign firms will be almost the same in appearance as those for domestic enterprises, the only difference being the indication of the ownership of the enterprises. The new licences will drop some old requirements, such as the unnecessary listing of vice-board chairmen and general managers.

(China Daily 12/28/2000)

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