Compared with waiting over 20 days for business registration approvals, a Hong Kong funded firm finishes recording at Guangdong Industrial and Commercial Bureau within three days. Gold Sun - Mak Ka Wing law firm, the first Guangdong-Hong Kong joint law firm in Guangzhou, benefited from negative list in Nansha Area of Guangdong FTZ.
They are glad to open a law service firm in Guangdong and will provide professional services especially complex law service as well as domestic and overseas investment consultation, said by Guo Jinkai, a senior partner of that law firm.
The "negative list" approach, identifying sectors and businesses that are off-limits or restricted for investment. It is one of twelve new items piloted in China's FTZs and will be promoted nationwide later.
From Oct. 1 to Dec. 19 of 2016, 6,294 foreign business have recorded in Guangdong, after which most of them can access the market directly.
In the past, under the "positive list" and a guidance catalogue foreign investment can only access in several exact industries in China. Besides, they had to go through a series of approvals by national ministries and commissions or local departments.
However, the "negative list" model is a common practice adopted in many countries to manage foreign investment. Currently, it allows overseas industries not on the list to follow the same new investment rules as domestic firms in China.
For instance, in Shenzhen, if a foreign investor wants to run business that is out of the negative list. It can apply for a business license at Shenzhen Municipal Market Supervison Administration and record at Shenzhen Municipal Economy, Trade and Information Commission later.
It is said that Department of Commerce of Guangdong will collaborate with Ministry of Commerce to revise the country's guidance catalogue for foreign investment, cutting more restrictive measures on the list.
According to Cao Dahua, director general of General Affairs Office of Guangdong Free Trade Zone, it is significant to replicate those innovative items for Guangdong's supply-side reform and open economy development.
Other items include simplified trade procedures and customs regulations, etc.
FTZs are a way of testing new policies, including interest rate liberalization and fewer investment restrictions, to better integrate the economy with international practices.
The expansion comes more than three years after the launch of China's first FTZ in Shanghai.
In late 2014, Tianjin, Fujian and Guangdong were allowed to set up the second group of FTZs. Another seven were added across the country in August this year.