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On July 11, 2024, the State Council released "The State Council's Reply Agreeing to Carry Out Comprehensive Pilot Programs for the Expansion of Service Industry Opening-up in Cities Including Shenyang," which approves the temporary adjustment of certain provisions of the 'Interim Regulations for the Administration of Registration of Non-enterprise Private Organizations,' 'Regulations on Travel Agencies,' 'Regulations on the Administration of Entertainment Venues,' 'Regulations on the Administration of Commercial Performances,' and the 'Special Administrative Measures for Foreign Investment Access (Negative List) (2021 Edition)' as of the date of the reply in the comprehensive pilot cities for the expansion of service industry opening-up including Shenyang, Nanjing, Hangzhou, Wuhan, Guangzhou, and Chengdu.

Nine main adjustments are outlined as follows:

1.Allows the establishment of non-profit medical institutions by co-funding from Chinese and foreign parties in Shenyang, Wuhan, Guangzhou, and Chengdu to provide basic healthcare services, subject to relevant regulations.

2.Allows foreign investors to fund the establishment of non-profit elderly care institutions in Hangzhou, Guangzhou, and Chengdu, which may be registered as non-enterprise private organizations if they meet the criteria.

3.Allows foreign-funded travel agencies to be set up in Shenyang, Guangzhou, and Chengdu, and to engage in outbound tourism businesses excluding Taiwan, provided they meet certain conditions.

4.Opens up the domestic internet virtual private network (VPN) business to foreign investment (with foreign equity not exceeding 50%) in Shenyang, Nanjing, Hangzhou, Guangzhou, and Chengdu, attracting overseas telecommunications operators to set up joint ventures to provide domestic internet virtual private network services to foreign-invested enterprises in these cities.

5.Lifts the foreign equity cap on value-added telecom services like information services (excluding app stores in prohibited foreign investment areas) and internet access services (limited to providing internet access services to users) in Shenyang, Nanjing, Hangzhou, Guangzhou, and Chengdu.

6.Delegates the approval authority for entertainment venues operated by foreign investors, investors from Hong Kong and Macau SARs, and Taiwan region investors to the cultural authorities of Nanjing, Hangzhou, Wuhan, Guangzhou, and Chengdu municipal governments.    

7.Delegates the approval authority for performance venue operating entities and performance brokerage agencies invested by foreign investors, investors from Hong Kong and Macau SARs, and Taiwan region investors to the cultural authorities of Nanjing, Hangzhou, Wuhan, Guangzhou, and Chengdu municipal governments.

8.Delegates the approval authority for commercial performances involving arts groups and individuals from foreign countries and the Hong Kong, Macau, and Taiwan regions to the cultural authorities of Nanjing, Wuhan, Guangzhou, and Chengdu municipal governments.

9.Allows foreign investment in social surveys in Guangzhou, with Chinese equity holding no less than 67%, and the legal representative must be a Chinese national.

These adjustments represent a significant step in the liberalization of service industries in these cities, aimed at fostering greater foreign investment and cooperation in various sectors.