Form of Establishment

• Foreign service suppliers may provide travel agency and tour operator services through joint ventures. Foreign majority ownership is not permitted for these joint ventures, and certain geographical restrictions apply. By December 11, 2004, foreign majority ownership will be permitted.  By December 11, 2007, wholly foreign-owned subsidiaries will be allowed, and all geographic restrictions will be lifted.

• Foreign service suppliers may provide convention services through joint ventures, with foreign majority ownership permitted

• Foreign service suppliers may provide photographic services through joint ventures, with foreign majority ownership permitted

• Travel agency and tour operator joint ventures must be mainly engaged in the travel business and annual worldwide turnover must exceed $40 million. 

• The registered capital of the joint venture shall be no less than RMB 4 million. By December 11, 2004,  registered capital must be no less than RMB 2.5 million. By December 11, 2007, the foreign registered capital requirement will be the same as that of Chinese travel agencies and tour operators.

• Foreign-invested travel agencies and tour operators may provide travel and hotel accommodation services for foreigners or Chinese directly through transportation and hotel operators in China offering such services.

• They may conduct tours for foreigners or Chinese.

• They may provide travelers check cashing services within China.

• Foreign-invested travel agencies and tour operators may not provide services to Chinese traveling abroad or to Hong Kong, Macao, or Taiwan.

• Managers, executives, and specialists of a representative office, branch, or subsidiary in China, temporarily moving as intra-corporate transferees, will be permitted an initial stay of three years.

• Managers, executives, and specialists of foreign-invested enterprises in China will be granted a long-term stay permit as stipulated in the terms of contracts concerned or an initial stay of three years, whichever is shorter.

• Service salespersons who are not based in China, and who meet certain other conditions set out in China’s services schedule, are limited to a 90-day stay.

• The cross border supply of travel and tourism related services by a foreign supplier is not subject to market access restrictions and is accorded national treatment.

• The provision of travel and tourism related services outside of China is not subject to market access restrictions and is accorded national treatment. 

• The conditions of ownership, operation and scope of activities for an existing foreign service supplier, as set out in the supplier’s contract or shareholders’ agreement or in a license establishing or authorizing the supplier’s operation or supply of services, will not be made more restrictive than they were on December 11, 2001.