China further opens distribution industry

The Ministry of Commerce has decided to empower the approving authority of foreign-funded commercial businesses to local commerce administrations.

That is a move to push forward the opening-up of China's distribution sector by simplifying the approving procedure. As of Mar. 1 this year, most of the applications by foreign investors for wholesalers and retailers for ordinary goods are subject to provincial commerce authorities and administrations of national economic development parks.

That includes any foreign retailer which has 30 stores at the most under no more than three franchises with each of them occupying less than 5,000 square meters. Or it can be a retailer which has no more than 50 stores in service operated under five brands with each of them having the space of less than 3,000 square meters. It can also be a retailer of which each store has no more 300 square meters.

Since its entry into the World Trade Organization in 2001, China has been honoring its commitment to further opening service trade industries.

Last year, the country promulgated or revised laws and regulations on distribution industry, direct selling, auction, franchise, auto sales, etc.

By People's Daily Online