A slight alteration to the rules of foreign-funded investment companies has opened the door of retailing and wholesaling to these foreign players in China for the first time. The Ministry of Commerce declared this on November 23.

A researcher with the Ministry of Commerce explained why the alteration was made. The new regulations of foreign investment in the commercial sector and the revised Foreign Trade Law were promulgated after the rules of foreign funded investment companies was issued in March.

In the newly released rules, Article 11 stipulates that Regulations for Registration of Foreign Trade Businesses and Regulations for Foreign Investment in Commercial Sector be observed by investment companies which deal with tech or goods imports and exports and act as agents, wholesalers, retailers and parties of franchising agreements.

Investment companies are allowed to expand their scope of business as long as they are in compliance with the two regulations mentioned above. They are no longer confined in sectors like manufacturing. It makes it possible for them to establish their presence in retailing and wholesaling sectors.

The researcher also confirmed that the Ministry of Commerce would encourage more foreign-funded investment companies to make forays into the country's circulation sector. He said they would bring massive capital and advanced expertise into the market.

As learned there are around 300 investment companies in China funded by investors from US, Europe, Japan and South Korea.

By People's Daily Online