(CFP Photo)
In a promotion conference held on July 13, Nanjing introduced its achievements in a pilot program to expand opening up the service sector.
Nanjing has implemented more than 50 out of the 104 tasks designated by the pilot program launched last December upon the approval of the State Council.
The city has continued to relax restrictions on the fields and conditions for foreign investment while promoting higher levels of opening up. For example, the asset requirement for foreign investors to establish a company was reduced from $400 million one year ago to $200 million now, with the requirement for the number of subsidiaries abolished.
In addition, Nanjing also support foreign investors in setting up institutions offering non-academic vocational skills training and create joint venture projects on vocational skills training. The city also encourages foreign-invested travel agencies to engage in outbound tourism, and allows law firms from Hong Kong and Macao to enter into partnership or launch joint-venture firms with partners in Nanjing.
As investment environment has become more friendly, foreign-invested and high-tech enterprises have showed more confidence. From January to May this year, Nanjing's actual use of foreign investment amounted to $3.916 billion, an increase of 25.5% year-on-year.
Notably, Phoenix Contact has increased its investment by $150 million to build a new factory in Nanjing’s Jiangning Economic and Technological Development Zone. The German company has been committed to its development in Nanjing for 30 years, with seven wholly-owned companies and a joint venture established in the city.
As a keynote speaker at the meeting, Elton Huang, the lead Partner of PwC Shanghai, stated that the real pain point of opening up the service sector lies in the streamlined integration among the links and elements of diverse areas, such as science and innovation, industry and consumption.
At the promotion meeting, Nanjing Mayor Chen Zhichang highlighted ten industry sectors and fields that require no-government approval for market entry. Chen said Nanjing will further embrace market-oriented operations in fields such as science and technology, finance, business, education and healthcare.
Furthermore, Nanjing released the initiative of "global digital service provider," which aims to take advantage of the pilot program to cultivate about 50 such service providers with global reach. They can be centered around digital technology, product, service or cross-border e-commerce.
