Related stories

Measures on the Administration of Foreign Investment in Leasing Business Provisional Regulations on Foreign Invested Cinemas Chinese Media Open to Private and Foreign Partners Restriction on Foreign Investment in Property Market – Why? Supplementary Rules (II) to "Tentative Provisions for the Establishment of Investment-type Companies by Foreign Investors"

China to Liberalize Foreign Trade on July 1

Effective July 1, 2004, trading companies in China no longer need to ask governments for approval to engage in foreign trade, according to China's newly revised law on foreign trade.

According to the revised law, a company may engage in foreign trade after it registers with government departments concerned, and no official permission is required so long as the applicant is a legal company.

Previously, foreign trade companies had to obtain licenses from governmental departments before they could engage in foreign trade, and foreign trade companies had to meet official requirements before being awarded licenses.

According to China's promises made upon on entry into the World Trade Organization, China will liberalize foreign trade in 2004, and China's revised foreign trade law stipulates the right to engage in foreign trade can be obtained by companies through registration with government departments concerned.

Under the new law, individual citizens in China may do foreign trade after they go through legal procedures.