China focus: Investment regime eased in Shanghai FTZ

A State Council plan to suspend some laws governing foreign investment in the Shanghai pilot free trade zone (FTZ) will break new ground in China's investment management mechanism and boost foreign capital inflow, said analysts. The plan under discussion at the ongoing session of the Standing Committee of the National People's Congress (NPC), China's top legislative body, concerns laws on foreign capital enterprises; Chinese/foreign equity joint ventures; and Chinese/foreign contractual joint ventures. The aim is to cancel superfluous administrative procedures and make it easier for foreign firms to set up in the FTZ. The plan conflicts with some existing laws so the idea was mooted to simply suspend the problematic regulations.