New policies offer preferential treatment for enterprises
Foreign-funded enterprises in the Beijing service industry have embraced a new stage of development amid the local government’s reforms aimed at further opening-up the sector.
Air France Industries KLM Engineering & MaintenanceBeijing General Aviation Line Maintenance, a joint venture between Air FranceKLM Group and BAIC Group providing airport maintenance services, was established in 2015.
In the past, foreign-funded enterprises were not allowed to participate in the airplane maintenance service sector in China. But, a new policy encourages investment from foreign capital in the field, said Li Wei, vice-general manager of the newly established company.
“For our company, the biggest convenience brought about by the new policy is that it has facilitated the cooperation between foreign and Chinese shareholders, laying the foundation of our company’s establishment,” Li said.
“In addition, as a pilot enterprise to test out the new policy, the Beijing government has provided a number of publicity opportunities. Beijing’s leaders have given our company significant attention, which has spread our good reputation.
“When our company was launched in Shunyi district and started business operations in Beijing Capital International Airport, the local government gave sufficient support in administrative supervision and approval,” he added.
A new registration policy has not yet been proposed. But the policy of “one corporate one card” involves an online system to finish all relevant processes via one card given to corporates, greatly promoting the convenience of the administrative process, according to Li.
“We believe this is a very meaningful exploration to pilot the policy reform in the service industry. The major changes in policies manifest the considerate preparation made by the government,” Li said.
The key point for the new policy for foreign-funded enterprises is that it has a positive effect on attracting foreign investment and upgrading governmental services, Li added.
Dragon Legend Entertainment is another enterprise founded during the reform of Beijing’s service industry policy.
“Agencies are an important driver of prosperity in the performance market,” said Mei Xueyun, general manager of the company.
“Beijing has allowed foreign-funded enterprises to carry out performance activities and brokerage business within the city, which can be regarded as a major step to implement the opening-up of the service industry and policy innovation to manage the performance market,” Mei said.
As a performance and stage programs agency, the company received support from the National Base for International Cultural Trade in terms of registration and gaining its operating qualification.
The company also gained the honor of receiving its operating qualification by the head of the Beijing Municipal Bureau of Culture in person, according to Mei.
In accordance with the new policy released by the central government in September 2016, the Beijing municipal government has proposed a package of new policies.
Considering the city’s own status, it has optimized the administrative processes for enterprises’ registration, records and operation, as well as providing them with services and governance.
In the registration process, the city’s business, industry and commerce departments launched an online “one-window” registration platform, through which foreign-funded enterprises can finish their registration by filling in only one table online.
To encourage the healthy operation of those companies, the administration also proposed a “dual score” credits system.
If the authorities receive good reports regarding an enterprise, it will give a positive credit score, or negative scores for poor reports.
Through the credit system, the authorities can provide beneficial policies to the enterprises with positive records regarding 24 items, including taxes and customs.
Enterprises with negative records, will receive penalties.