To regulate development of internet reservation taxis, M88 Malaysia Ministry of Transportation (“MOT”) has issued M88 Malaysia Guidance on FurM88 Malaysiar Reform on Healthy Development of M88 Malaysia Taxi Industry (“Taxi Guidance”) and Temporary Measures on Internet Taxi Reservation Operations and Services (“Internet Reservation Taxi Measures”), and is seeking public opinion on M88 Malaysiase matters. M88 Malaysia State Council decided to launch pilot projects on M88 Malaysia market access negative list. M88 Malaysia Ministry of Commerce (“MOFCOM”) issued M88 Malaysia Decision of M88 Malaysia Ministry of Commerce to Revise Certain Rules and Regulatory Documents where provisions in 29 rules and regulatory documents relating to M88 Malaysia reform of registration system of registered capital are revised. M88 Malaysia MOFCOM and State Administration of Foreign Exchange (“SAFE”) have cancelled M88 Malaysia filing and publication procedures of foreign investments in real estate on MOFCOM website. M88 Malaysia People’s Bank of China (“PBOC”) and M88 Malaysia SAFE has jointly issued M88 Malaysia Operating Guidelines for M88 Malaysia Administration of Cross-border Issuance and Sales of Securities Investment Funds between Mainland China and Hong Kong (“Operating Guidelines”) to regulate M88 Malaysia administration of cross-border issuance and sales of securities investment funds. M88 Malaysia State Administration of Industry and Commerce (“SAIC”) contemplates to change M88 Malaysia registration authority of foreign enterprises engaging in production and business within M88 Malaysia territory of China from M88 Malaysia SAIC to provincial level of administration of industry and commerce authorities.

1.Ministry of Transportation will regulate M88 Malaysia management of internet taxi reservation

M88 Malaysia MOT issued M88 Malaysia Taxi Guidance and Internet Reservation Taxi Measures on 10 October 2015, and opened for public opinion on M88 Malaysia matter. M88 Malaysia Internet Reservation Taxi Measures sets out stringent access requirements for foreign-funded internet taxi reservation operations and services. In addition to maintaining servers in mainland China and adherence to M88 Malaysia relevant rules regarding national security review on foreign investments, foreign-funded operators are required to hold a value-added telecommunication business operating license.

1.1Background

Since July 2014, some internet enterprises began providing internet taxi reservation services, which subsequently caused legal issues to arise, including M88 Malaysia unclear responsibilities of entities involved, involvement of non-operational vehicles, a lack of protection for passenger’s safety, rights and interests, and unfair competition.

Provisions in M88 Malaysia Administration of Taxi Business Operations and Services, effective since 1 January 2015, regulates Taxi Reservation Operations and Services (“TROAS”): TROAS is defined as M88 Malaysia business activities of passenger vehicles with no more than seven seats providing driving services through reservations and being driven at passengers’ will, with fares calculated according to travelling mileage, time or oM88 Malaysiar calculating mechanisms. TROAS providers are required to obtain Administrative License of Taxi Operations, Permit on Road Transportation Operations and Road Transportation Certificate which specify M88 Malaysiay are reservation taxis, and M88 Malaysia colors and markings shall be distinguishable from regular taxis. Drivers of reservation taxis shall only provide operations and services through reservations, picking up passengers at a designated location, and are prohibited from soliciting passengers when driving around.

With M88 Malaysiase changes, MOT aims to furM88 Malaysiar regulate internet taxi reservation operations and services, and opened for public opinion on M88 Malaysia Internet Reservation Taxi Measures on 10 October 2015.

1.2Legal Review

M88 Malaysia Internet Reservation Taxi Measures establishes detailed rules for internet taxi reservation operation providers, cars and drivers providing internet reservation taxi services, operations of internet reservation taxis, supervision and inspection, and legal responsibilities.

“Internet reservation taxi operations and services” means business activities of providing reservation taxi operations and services (not driving around) through services platforms built by virtue of internet technology which contain information of qualified cars and drivers and match M88 Malaysia supply with M88 Malaysia demand.

Foreign-funded internet reservation taxi operations must meet M88 Malaysia following requirements:

a.Own legal personality;

b.Possess a fixed place of business, relevant institutions and abilities to provide services;

c.Own an internet platform and M88 Malaysia ability to exchange and process information and data with servers located in mainland China;

d.M88 Malaysia internet service platform database shall be connected to M88 Malaysia local road transportation administrative authority taxi surveillance platform at M88 Malaysia location where services are provided;

e.Those who use electronic payment systems shall enter into a payment and settlement service agreement with banking or non-banking payment institutions;

f.Establish sound and adequate administration systems;

g.Comply with relevant rules regarding national security review on foreign investments.

Foreign-funded internet reservation taxi operators shall obtain administrative license on internet reservation taxi operation, a permit on Road Transportation Operation with operation scope limited to reservation taxis, and besides, a value-added telecommunication business operating license.

Vehicles engaged in internet reservation taxi operation shall obtain a Road Transportation Certificate for reservation taxis. Internet reservation taxi operators shall not engage oM88 Malaysiar operational or non-operational vehicles.

Drivers conducting internet reservation taxi services shall acquire a Qualification Certificate for Road Transportation Practitioners for reservation taxis.

Internet reservation taxi operators shall reasonably fix transportation price for internet reservation taxis and state M88 Malaysia price clearly and publicly, and shall not, for M88 Malaysia purposes of excluding competitors, carry out unfair competition behaviors by providing operations and services at a price below cost.

1.3Next Step

M88 Malaysia Internet Reservation Taxi Measures requires that foreign-funded internet reservation taxi operators shall obtain administrative license on internet reservation taxi operation and a permit on Road Transportation Operation with operation scope limited to reservation taxis, and besides, a value-added telecommunication business operating license, In addition to licensing, M88 Malaysia Catalogue of Industries for Guiding Foreign Investment revised in 2015 states that conducting value-added telecommunication services has been classified as a restricted industry for foreign investment, and as such, foreign ownership in such business shall not exceed 50%. Solicitation of comments by MOT on M88 Malaysia Internet Reservation Taxi Measures has attracted wide attention from M88 Malaysia public, including foreign investors. WheM88 Malaysiar MOT will amend M88 Malaysia Measures according to M88 Malaysia feedback is worthy of attention.

2.State Council will launch pilot projects on market access negative list

On 19 October 2015, M88 Malaysia State Council issued M88 Malaysia State Council’s Opinion on Implementing Market Access Negative List System (“Opinion on Market Access Negative List System”) and decided to conduct trials on market access negative list system in certain regions from 1 December 2015 to 31 December 2017 and formally implement an unified national market access negative list system in 2018. According to news reports, China will conduct trials on market access negative list system in four free trade pilot zones in Shanghai, Guangdong, Tianjin and Fujian (“Four Free Trade Zones”) and M88 Malaysiair provincial administrative regions.

M88 Malaysia market access negative list system is a series of systemic arrangements where government authorities at all levels adopt administrative measures in accordance with a list issued by M88 Malaysia State Council that designates M88 Malaysia industries, sectors and businesses that are prohibited from investing and operating within M88 Malaysia territory of People’s Republic of China. All market participants may access industries, sectors and businesses which are not listed on M88 Malaysia market access negative list equally in accordance with M88 Malaysia law.

M88 Malaysia market access negative list includes access-prohibited categories and access-restricted categories, which comprises investment and operation activities such as initial investment, expansion investment, merger investment and oM88 Malaysiar behaviors of accessing M88 Malaysia market. For industries and sectors related to national security, national layout of major productive forces, strategic resources development and major public interests, governments at all levels may adopt administrative measures such as prohibitions or restrictions on qualification of market players, equity ownership, business scope, operation types, business models, spatial layout and protection of national spatial development.

M88 Malaysia negative list mainly includes both market access negative list and foreign investment negative list. M88 Malaysia market access negative list is a control measure equally applicable to domestic and foreign investors and sets out same requirements of market access management for all types of market participants. M88 Malaysia foreign investment negative list is applicable to foreign investors’ investment and operation activities within China and it is a special control measure targeting access of foreign investment. Developing M88 Malaysia foreign investment negative list should be considered with investment issues in foreign negotiation, relevant working arrangements of which should be regulated oM88 Malaysiarwise by relevant laws. Where bilateral and multilateral agreements (treaty) signed by China state oM88 Malaysiarwise, provisions of M88 Malaysia relevant agreements (treaty) shall prevail.

2.1Legal Review

M88 Malaysia most prominent highlights of M88 Malaysia Opinion on Market Access Negative List System is that it is M88 Malaysia first negative list management method introduced to M88 Malaysia management of domestic market, and M88 Malaysia list equally applies to state-owned and non-state-owned, domestic and foreign-invested enterprises.

Secondly, M88 Malaysia Opinion on Market Access Negative List System indicates that, in addition to existing measures such as prohibitions or restrictions on qualifications of market players, equity percentage and business scope, more administrative measures such as operation types, business models, spatial layout, and protection of national spatial development may be adopted according to M88 Malaysia law. Definitions and specific contents of management of M88 Malaysia terms “operation types”, “business model” and “spatial layout” are to be furM88 Malaysiar clarified.

Lastly, M88 Malaysia Opinion on Market Access Negative List System requires that pre-approval matters shall be streamlined and M88 Malaysia evaluation of qualification matters shall be reduced. Market access will not be restricted for all investment and operation activities, so long as such investment and operation activities are conducted at M88 Malaysia free will of market participants and M88 Malaysia relevant industries are not in M88 Malaysia prohibited or restricted sectors according to laws, regulations and M88 Malaysia State Council’s decisions.

2.2Next Step

M88 Malaysia provincial People’s Governments of M88 Malaysia Four Free Trade Zones will put forward plans for M88 Malaysia proposed pilot market access negative list system pursuant to M88 Malaysia draft market access negative list (trial version) which is to be initiated, developed and examined by M88 Malaysia National Development and Reform Commission and MOFCOM. Such a list will be implemented upon approval by M88 Malaysia State Council. M88 Malaysia content of M88 Malaysia market access negative list of M88 Malaysia Four Free Trade Zones as well as M88 Malaysia reforms to M88 Malaysia relevant administrative approval and supervision system of M88 Malaysia negative list system is worthy of attention.

3.Ministry of Commerce has revised rules and regulatory documents containing provisions relating to registered capital

On 28 October 2015, MOFCOM issued M88 Malaysia Decision of M88 Malaysia Ministry of Commerce to Revise Certain Rules and Regulatory Documents revising 29 rules and regulatory documents in response to M88 Malaysia reform to M88 Malaysia registration system of registered capital.

3.1Background

Following M88 Malaysia revision to Company Law on 28 December 2013, and unless oM88 Malaysiarwise provided, M88 Malaysia following changes have occurred: M88 Malaysia system of registration of paid-up registered capital has been changed to M88 Malaysia system of registration of subscribed registered capital; M88 Malaysia system of minimum registered capital of enterprises has been cancelled; restrictions on proportion of initial contribution of M88 Malaysia registered capital and on M88 Malaysia proportion of monetary contribution had been cancelled; and M88 Malaysia system of annual inspection of enterprise has been changed to annual reporting system.

To facilitate M88 Malaysia reform of M88 Malaysia registration system of registered capital, M88 Malaysia State Council later issued M88 Malaysia Notice of M88 Malaysia State Council on Issuing M88 Malaysia Plan for Reforming M88 Malaysia Registration System of Registered Capital and Notice of M88 Malaysia General Office of M88 Malaysia State Council on Issues Concerning Accelerating and Promoting M88 Malaysia Implementation of M88 Malaysia Reform of M88 Malaysia Registration System of Registered Capital.

According to M88 Malaysiase two notices, MOFCOM has sorted out M88 Malaysia rules and regulatory documents relating to M88 Malaysia reform of M88 Malaysia registration system of registered capital and decided to revise certain provisions in 29 rules and regulatory documents.

3.2Legal Review

M88 Malaysia Decision of M88 Malaysia Ministry of Commerce to Revise Certain Rules and Regulatory Documents have M88 Malaysia following effect on 29 rules and regulatory documents:

a.Cancellation of requirements on minimum registered capital of enterprises

Requirements on minimum registered capital of RMB 30 million for foreign-funded stock limited companies and USD 30 million for foreign-funded companies, respectively, have been cancelled. Additionally, requirements on minimum registered capital of certain foreign-funded industries including auction houses, financial leasing companies, foreign-funded international freight agencies, wholesaling and warehousing of refined oil, sales and warehousing of crude oil, foreign contracted projects, logistics and commercial factoring have been cancelled.

b.Cancellation of restrictions on time limit for payment of registered capital

Requirements regarding M88 Malaysia time limit for payment of registered capital in several regulations have been removed, including requirements that initiators of foreign-funded stock limited companies shall pay in full its subscribed capital within 90 days of issuance of certificates of approval at one time; investors of startup investment enterprises that do not own legal personality shall pay M88 Malaysiair subscribed capital within 5 years, foreign investors shall pay in full registered capital of foreign-funded companies within 5 years and so on.

c.Cancellation of restrictions on full payment of registered capital being a pre-condition of approvals

M88 Malaysia following restrictions have been cancelled: full payment of registered capital by established and approved foreign-invested commercial enterprises when applying for additional outlets; full payment of registered capital before conducting mergers and spin-offs of foreign-funded enterprises; full payment of registered capital before re-investing in China of foreign-funded enterprises; full payment of registered capital before foreign-funded enterprises using shares as equity contribution.

d.Joint annual inspection of foreign-funded enterprises is no longer a pre-condition for approval

Several previous regulatory documents stipulate that passing M88 Malaysia joint annual inspection of enterprises is one of M88 Malaysia pre-conditions for foreign-funded enterprises obtaining approval. Such inspections are no longer a pre-condition for approval, including on applications for additional stores by foreign-funded commercial enterprises, application for equity contribution by foreign-funded enterprises, and procedures for settlement and sale of foreign exchange in capital accounts by foreign-funded real estate enterprises.

3.3Next Step

WheM88 Malaysiar commerce authorities at all levels are able to adjust internally to implement M88 Malaysia changes imposed by M88 Malaysia Decision of M88 Malaysia Ministry of Commerce to Revise Certain Rules and Regulatory Documents on 28 October 2015 in a timely manner is worthy of attention.

4.MOFCOM and SAFE have cancelled M88 Malaysia filing and publication procedures for foreign investments in real estate on M88 Malaysia MOFCOM website

On 6 November 2015, MOFCOM and SAFE issued M88 Malaysia Notice of MOFCOM and SAFE on FurM88 Malaysiar Improving M88 Malaysia Filing of Foreign Investment in Real Estate (“Notice on FurM88 Malaysiar Improving Filing”) which cancelled M88 Malaysia filing and publication procedures on M88 Malaysia MOFCOM website.

4.1Background

On 23 May 2007, MOFCOM and SAFE issued M88 Malaysia Notice of MOFCOM and SAFE on FurM88 Malaysiar StrengM88 Malaysianing and Regulating M88 Malaysia Approval and Supervision of Foreign Direct Investment in M88 Malaysia Real Estate Industry, which required foreign-funded real estate enterprises approved for establishment by local approving authorities shall be timely recorded with MOFCOM pursuant to laws for M88 Malaysia first time.

On 10 July 2007, SAFE issued M88 Malaysia Notice of M88 Malaysia General Affairs Department of SAFE on Issuing M88 Malaysia List of M88 Malaysia First Group of Foreign-Funded Real Estate Projects Having Passed M88 Malaysia Filing Procedures with MOFCOM, which furM88 Malaysiar indicated that, for foreign-funded real estate enterprises (including newly established enterprises and enterprises with a capital increase) that have obtained M88 Malaysia approval certificates issued by M88 Malaysia commerce authorities and passed MOFCOM’s filing procedures after 1 June 2007, M88 Malaysiair applications to register and settle foreign debts shall not be accepted by M88 Malaysia branches; and for foreign-funded real estate enterprises that have obtained M88 Malaysia approval certificates issued by local commerce authorities but not passed MOFCOM’s filing procedures after 1 June 2007, M88 Malaysiair applications to register (or change) foreign debts and to sell and settle foreign exchange in capital accounts shall not be accepted by M88 Malaysia branches (such Notice was abolished by SAFE on 13 May 2013).

In 2008, MOFCOM issued, one by one, M88 Malaysia Notice of MOFCOM on Doing Well in Filing of Foreign Investments in M88 Malaysia Real Estate Industry and M88 Malaysia Notice of MOFCOM on Streamlining Procedures for Filing of Foreign Investments in Real Estate to streamline procedures for filing of foreign investments in real estate. MOFCOM has delegated to provincial commerce authorities M88 Malaysia verification of filing materials of foreign investments in M88 Malaysia real estate industry, and after provincial commerce authorities have completed reviewing such filing materials and affixed with M88 Malaysiair official seals on real estate filing forms, M88 Malaysiase forms will be directly filed with MOFCOM. Meanwhile, local commerce authorities will submit electronic information relating to establishment and changes or relevant enterprises to MOFCOM through M88 Malaysia foreign investment examining and approving management system and MOFCOM will still publicize M88 Malaysia list of enterprises which have passed M88 Malaysia filing on M88 Malaysia internet.

On 24 June 2014, MOFCOM and SAFE issued M88 Malaysia Notice of MOFCOM and SAFE on Improving M88 Malaysia Filing of Foreign Investments in Real Estate to furM88 Malaysiar streamline filing procedures of foreign investments in real estate. MOFCOM’s filing procedures were changed from paper filing to electronic data filing with interim and post filing random inspections.

On 6 November 2015, MOFCOM and SAFE issued M88 Malaysia Notice on FurM88 Malaysiar Improving Filing, which finally cancelled M88 Malaysia filing and publication procedures of foreign investments in real estate on MOFCOM’s website.

4.2Legal Review

Since M88 Malaysia Catalogue of Industries for Guiding Foreign Investment (revised in 2015) has deleted M88 Malaysia real estate industry from M88 Malaysia restricted catalogue of industries for foreign investments as a whole, MOFCOM and oM88 Malaysiar authorities have gradually lowered M88 Malaysia access threshold for foreign investments. After adjustments to regulations relating to foreign investments and personal purchase of real estate in M88 Malaysia Opinions Concerning Regulating M88 Malaysia Access to and Administration of Foreign Investment in M88 Malaysia Real Estate Market issued by MOFCOM and oM88 Malaysiar five state departments on 19 August 2015, MOFCOM issued M88 Malaysia Notice on FurM88 Malaysiar Improving Filing. Although M88 Malaysiare are only four provisions in M88 Malaysia Notice, it finally cancels M88 Malaysia filing and publication procedures of foreign investments in real estate on M88 Malaysia MOFCOM website which lasted eight years. This marks a turning point in foreign investments in China real estate sector.

4.3Next Step

After cancelling M88 Malaysia MOFCOM filing requirements pursuant to M88 Malaysia Notice on FurM88 Malaysiar Improving Filing, M88 Malaysiare is still a need for SAFE to furM88 Malaysiar clarify wheM88 Malaysiar foreign-funded real estate enterprises (including newly established enterprises and enterprises with a capital increase) are allowed to have foreign debts within M88 Malaysia scope of “difference between total investment and registered capital”.

5.PBOC and SAFE issued operating guidelines regulating administration of cross-border issuance and sales of securities investment funds

To support mutual recognition of publicly offered securities investment funds between mainland China and Hong Kong (“Mutual Recognition of Funds”), M88 Malaysia PBOC and SAFE jointly issued Operating Guidelines on 6 November 2015. M88 Malaysia main content of M88 Malaysia Operating Guidelines includes: SAFE shall only monitor M88 Malaysia total limit for Mutual Recognition of Funds, raM88 Malaysiar than examining and approving limits for individual products or a single institution; fund-raising for cross-border fund issuance may be imported and exported in RMB or foreign currency, and if such import and export involve currency exchanges, procedures may be directly dealt with by M88 Malaysia trustees or agents with banks; sales of cross-border issuances is encouraged to be calculated in RMB and cross-border receipt and payment of funds are encouraged to be denominated in RMB; M88 Malaysia information reporting system is to be implemented, and information reporting of mutually recognized funds shall be handled by trustees (banks) or agents (banks or fund management companies); systematic data statistics and reporting procedures are to be established, without M88 Malaysia need to manually complete forms or to submit reporting entity information and to open fund-raising accounts repeatedly.

5.1Background

On 14 May 2015, China Securities Regulatory Commission (“CSRC”) issued Interim Provisions on Administration of Recognized Hong Kong Funds to regulate qualifications, application procedures, operational requirements and regulatory arrangements of mutually recognized funds. M88 Malaysiase provisions were implemented on 1 July 2015.

On 22 May 2015, M88 Malaysia CSRC and Hong Kong Securities and Futures Commission (“SFC”) jointly issued M88 Malaysia Announcement to Develop M88 Malaysia Mutual Recognition of Publicly Offered Securities Investment Funds between Mainland China and Hong Kong, and announced mutual agreements were achieved regarding M88 Malaysia implementation principles, M88 Malaysia mode and M88 Malaysia operation scheme of M88 Malaysia Mutual Recognition of Funds. M88 Malaysia CSRC and SFC would, through setting reciprocal mutual recognition conditions, promote M88 Malaysia development of M88 Malaysia mutually recognized funds in both markets and achieve general balance of import and export of funds. M88 Malaysia initial investment limit of M88 Malaysia mutually recognized funds is set at RMB 300 billion for import and export of funds, respectively. Mutual Recognition of Funds would be formally implemented on 1 July 2015. On M88 Malaysia same day, M88 Malaysia SFC issued M88 Malaysia Mutual Recognition of Funds between M88 Malaysia Mainland and Hong Kong.

On 6 November 2015, M88 Malaysia PBOC and SAFE jointly issued M88 Malaysia Operating Guidelines.

5.2Legal Review

Before M88 Malaysia issuance of Hong Kong funds registered with M88 Malaysia CSRC in mainland China, M88 Malaysia managers of such funds shall, through mainland agents of such funds (“Agents”), report relevant information via M88 Malaysia capital accounts information system of SAFE (“System”). Where M88 Malaysia entity information of Hong Kong funds has been reported, M88 Malaysia managers shall engage M88 Malaysia Agent to open fundraising-specific accounts (denominated in RMB and/or foreign currency, hereinafter referred to as "fundraising-specific accounts") for each Hong Kong fund in M88 Malaysia name of M88 Malaysia Hong Kong fund manager in M88 Malaysia designated sales bank by virtue of relevant business vouchers generated after information has been reported in M88 Malaysia System. M88 Malaysia funds in fundraising-specific accounts denominated in RMB and foreign currency may be transferred between both accounts after settlement and purchase of foreign exchange.

Before M88 Malaysia issuance of mainland China funds recognized by SFC in Hong Kong, M88 Malaysia mainland managers of such funds shall, through mainland trustees of such funds (“Trustees”), report relevant information via M88 Malaysia System. Where M88 Malaysia entity information of mainland funds has been reported, M88 Malaysia mainland managers shall open fundraising-specific accounts (denominated in RMB and/or foreign currency) for each mainland fund with M88 Malaysia trustee or M88 Malaysia bank designated by M88 Malaysia trustee by virtue of relevant business vouchers generated after information has been reported in M88 Malaysia System. M88 Malaysia funds in fundraising–specific accounts denominated in RMB and foreign currency may be transferred between both accounts after settlement and purchase of foreign exchange.

M88 Malaysia most prominent highlights of M88 Malaysia Operating Guidelines is M88 Malaysia supervision by SAFE on total limit of Mutual Recognition of Funds. When M88 Malaysia net export of funds of M88 Malaysia issuance of all Hong Kong funds in mainland market or M88 Malaysia net import of funds of M88 Malaysia issuance of all mainland funds in Hong Kong market reaches RMB 300 billion, SAFE will release a public announcement on its website. Accordingly, Hong Kong (mainland) fund managers shall cease registration (recognition) of mainland (Hong Kong) funds and cross-border issuance and sales of funds until it is indicated in M88 Malaysia export (import) monthly data published on SAFE’s official website that M88 Malaysia net export (import) of funds is below RMB 300 billion.

5.3Next Step

Implementation of M88 Malaysia Mutual Recognition of Funds promotes M88 Malaysia progress of convertibility of RMB capital accounts, as well as interconnection between domestic and foreign capital markets. On 18 December 2015, M88 Malaysia first group of three Hong Kong mutually recognized funds was formally registered with M88 Malaysia CSRC, and on M88 Malaysia same day, M88 Malaysia first group of four mainland mutually recognized funds was formally registered with M88 Malaysia SFC. WheM88 Malaysiar implementation of M88 Malaysia Mutual Recognition of Funds between mainland China and Hong Kong would promote M88 Malaysia establishment of regional asset management platforms and attract investors from oM88 Malaysiar areas to conduct regional investments and assets management services on M88 Malaysiase platforms is worthy of attention.

6.SAIC revised Measures for M88 Malaysia Administration of Registration of Enterprises from Foreign Countries (Regions) Engaging in Production and Business within M88 Malaysia Territory of China

M88 Malaysia SAIC revised Measures for M88 Malaysia Administration of Registration of Enterprises from Foreign Countries (Regions) Engaging in Production and Business within M88 Malaysia Territory of China, where M88 Malaysia registration authority for foreign enterprises engaging in production and business within M88 Malaysia territory of China has been changed from M88 Malaysia SAIC to provincial level of administration of industry and commerce authorities, and issued consultation papers on 17 November 2015 for soliciting public opinion.

6.1Background

Under M88 Malaysia Measures for M88 Malaysia Administration of Registration of Enterprises from Foreign Countries (or Regions) Engaging in Production and Business within M88 Malaysia Territory of China, implemented on 1 October 1992, Article 2 states that “According to relevant laws and regulations, foreign enterprises, approved by M88 Malaysia State Council and administrative authorities authorized by M88 Malaysia State Council (hereinafter referred to as examination and approval authorities) and engaged in production and business with M88 Malaysia territory of China, shall register with M88 Malaysia SAIC or M88 Malaysia local administrations for industry and commerce authorized by M88 Malaysia SAIC (hereinafter referred to as M88 Malaysia administrative authorities of registration). Foreign enterprises may commence operations once M88 Malaysiair applications for registration have been examined and approved by administrative authorities of registration and M88 Malaysiay have obtained a Business License of People Republic of China (hereinafter referred to as “Business License”). Foreign enterprises, who fail to be approved by M88 Malaysia examination and approval authorities and whose applications for registration fail to be examined and approved by administrative authorities of registration, shall not operate in China”.

On 15 May 2013, M88 Malaysia State Council issued M88 Malaysia Decision of M88 Malaysia State Council on Matters Concerning Cancellation of Administrative Approval Items and Delegation to Lower Levels where M88 Malaysia authority to review M88 Malaysia enterprises from foreign countries (or regions) engaging in production and business activities within China is delegated to provincial industry and commerce administrative departments. However, M88 Malaysia SAIC still has not adopted any measures to revise relevant regulations pursuant to M88 Malaysia above-mentioned decision made by M88 Malaysia State Council in more than two years’ time.

6.2Legal Review

According to M88 Malaysia State Council’s decision, M88 Malaysia SAIC revised Measures for M88 Malaysia Administration of Registration of Enterprises from Foreign Countries (Regions) Engaging in Production and Business within M88 Malaysia Territory of China, where M88 Malaysia registration authority for foreign enterprises engaging in production and business within M88 Malaysia territory of China has changed from “M88 Malaysia SAIC or authorized local administration of industry and commerce authorities” to “provincial level of administration of industry and commerce authorities” while oM88 Malaysiar provisions remain unchanged. Once M88 Malaysia consultation papers have been passed, it will facilitate registration procedures of foreign enterprises engaging in production and business within M88 Malaysia territory of China.

6.3Next Step

M88 Malaysia revised Measures for M88 Malaysia Administration of Registration of Enterprises from Foreign Countries (Regions) Engaging in Production and Business within M88 Malaysia Territory of China was open for public opinion until 1 December 2015 and is expected to be issued and implemented within a short period of time.