As of July 1, domestic and foreign trading companies in China
will no longer need to seek government approval to engage in
foreign trade. The newly revised foreign trade law, which goes into
effect on Thursday, abolishes much of the red tape that hindered
operations in the past.
According to the revised law, a legally registered company needs
no special official permission to engage in foreign trade.
Previously, companies had to obtain licenses from various
government departments before they could do so, and a number of
official requirements had to be satisfied before licenses were
awarded.
In accordance with China’s World Trade Organization commitment
to liberalize foreign trade in 2004, the new law states that
companies can engage in foreign trade after registering with the
government.
The new law also permits individual citizens to conduct foreign
trade after they complete certain legal procedures.
(Xinhua News Agency June 30, 2004)