Beijing eliminates special licensing rules for HK, Macao, and Taiwan ventures in China

Premier Li Keqiang announced that China will abolish 17 licensing regulations that formerly governed investment and licensing for 'compatriots' from Hong Kong, Macao, and Taiwan

Li Keqiang, File Photo

Li Keqiang, File Photo (By Associated Press)

TAIPEI (Taiwan News) – Chinese Premier Li Keqiang convened a meeting of the State Council on Wednesday, July 18 to announce that the government will abolish special administrative licensing regulations for people from Hong Kong, Macao, and Taiwan living in China applying for corporate licenses.

While China has made the decision to postpone issuing new corporate licenses for U.S. citizens, on July 18 the government announced the removal of 17 regulations that previously governed the issuance of such business licenses to citizens from Hong Kong, Macao, and Taiwan.

The lifting of the regulations represents Beijing’s effort to facilitate economic integration. Li said the new policy would be to operate under a “uniform commitment” to industries which Beijing designates as domestic industries, according to Liberty Times.

Among the regulations being abolished, a special pension agency for dealing with citizens of the special administrative regions and citizens of Taiwan will be eliminated.

According to Li, the goal is to make lengthy approval processes for investment proposals unnecessary moving forward. He claims the new measures will cultivate enthusiasm and creativity in the domestic market and create a level playing field among “Chinese compatriots.”

Liberty Times notes that these new measures are intended to stimulate investment and business ventures at a time when China finds itself in a trade war with the U.S. As China eases regulations for “compatriots,” it is also very likely to begin tightening regulations for U.S. businesses and rejecting or suspending business licenses for U.S. companies as a counterattack strategy to damage U.S. interests in China.