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New rules issued for setting up rail freight services in China

China
14/11/2000
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The Ministry of Railways (MOR) and Ministry of Foreign Trade and Economic Cooperation (MOFTEC) have jointly issued new rules, which set out the basic requirements and procedures for setting up a rail freight service in China. The Provisional Measures for Examination, Approval and Administration of Foreign Investment in Rail Freight Transport Services (New Rules) include the following provisions:

  • foreign investment must take one of the two forms: equity joint venture or cooperative joint venture;
  • the shareholding of the Chinese party in such JVs shall be no less than 51 percent;
  • the foreign investor and its Chinese partner both need to have more than 10 years experience in transport industry;
  • the foreign investor must possess considerable financial strength and a good track record;
  • the JV to be established needs to have vehicles, facilities and sites commensurate with its business scale, stable business, necessary technical and management staff;
  • the registered capital of the JV shall be no less than 25 million USD.

For further information please contact Aili Zhao at [email protected] or on +8610 6590 0389.

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