Wholly-funded foreign-trade companies, known as "purchasing
centres", may soon get off the ground in Shenzhen in what would be
the pilot launch of such businesses in China.
Although Shenzhen is awaiting central government approval, rules
for the centres are due to be announced this month and the
municipal government is ready to accept applications from
multinationals.
Ye
Minhui, director of the foreign economic and trade bureau of
Shenzhen, who revealed this, said the aim was to create a pilot
city in opening the service trade sector to foreign companies as
part of China's World Trade Organization pledges.
If
the experiment in the southern special economic zone is successful,
the scheme will be expanded to other mainland regions. Shenzhen
will also open a platform for small and medium-sized foreign
companies in the bond zone to do both foreign and internal
trade.
However, Shenzhen's ambitious plans still need approval from the
central government. China's Ministry of Foreign Trade and Economic
Co-operation (MOFTEC) is reviewing the matter.
An
official with the ministry's department of foreign investment said
Wednesday that Shenzhen's proposal is feasible.
He
said MOFTEC will work with the finance, taxation, customs and
foreign exchange authorities to settle the issue.
A
team will be sent to Shenzhen soon to conduct a feasibility study
and seek opinions from local and foreign enterprises.
"It will be a process to balance interests from all sides," he
said. "We have to see whether Shenzhen will still enjoy such
advantage after China's WTO entry."
In
spite of the temporary uncertainty of the central government
policy, Shenzhen's steady lobbying, active promotion and a bold
style in reforms and opening-up would help it win consensus from
the top, insiders said.
Shenzhen seems to have got everything ready and it is likely the
central government will accept the plan as it is, said an official
with the State Administration of Industry and Commerce.
Yet even if the matter is approved, it will only be conducted on an
experimental basis, because of a prudent attitude of the Chinese
Government in issuing licenses to foreign-funded purchasing
centres, Shenzhen's foreign trade chief Ye Minhui said.
So
far, more than 20 foreign companies have submitted their
applications.
Shenzhen is also working over new policies to enhance trade ties
with neighbouring Hong Kong.
Hong Kong residents are already allowed to open stores as
individuals and apply for booths in big department stores in the
boundary region of Luohu.
Ye
said the geographical restrictions will be lifted to allow them to
open private stores in other parts of Shenzhen.
(China Daily June 6, 2002)
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