China: Beijing: State Council temporarily relaxes foreign investment rules in certain sectors of Beijing economy

The State Council has enacted a number of temporary relaxations of rules governing foreign investment in certain industries, applicable in parts of Beijng. It has temporarily removed a 50% equity cap on foreign investment in value-added telecommunications services in Beijing, applicable within the capital's Service Industry Expansion and Opening-up Comprehensive Demonstration Zone and the Demonstration Park. The cap was previously imposed by the 2020 version of the Special Administrative Measures for Foreign Investment Access (Negative List). The State Council has also temporarily removed a 50% equity cap on foreign investment in information service businesses in Beijing, applicable within the capital's Zhongguancun National Innovation Park. The lifting of the cap is only applicable to the application store. This cap was previously imposed by the Provisions on Administration of Foreign-Invested Telecommunications Enterprises. Further, the State Council has announced that foreign investment in VPN services in Beijing will be permitted on a temporary basis. Foreign stakes in a VPN business may not exceed 50%.