Mar. to Jun. 2015 China Bulletin

On June 19, 2015, the Ministry of Information Industry and Technology (MIIT) issued a new notice allowing foreign investors to hold 100% equity in companies engaging in online data processing and transaction processing business in China, a nation-wide relaxation based on the earlier pilot policy effective only in Shanghai Free Trade Zone.

Foreign investors are now allowed to apply for establishment of wholly foreign-owned enterprises to engage in such ecommerce services as online data processing and transaction processing (categorized as a Value Added Telecommunication Service, which normally should allow no more than 50% foreign equity), regardless of the location of the enterprise.  Other conditions and requirements for setting up such companies are based on the rules stipulated in the Administrative Regulations Concerning Foreign Invested Telecommunication Services.

Thanks to Jeff Sun of Jaguar Business Consultancy Ltd., Beijing for research and comments.

Questions?  Please contact Allan Marson at or +1 408-738-0592 #719 for a complimentary consultation with a member of our team on this liberalization of investment in online activity.