The Shanghai government plans to give district-level authorities the power to clear foreign investment projects with an investment of up to $100 million from August 1, a great leap forward from the previous $30 million threshold.
The move is expected to attract more foreign investment to Shanghai, which is aiming to position itself as a global financial center.
"We'll delegate more powers to the lower-level commerce commissions to facilitate foreign investment in the city," said Sha Hailin, director of Shanghai Municipal Commission of Commerce (SCOFCOM).
According to Sha, foreign investors have set up 16 regional headquarters, five investment companies, and 10 research and development centers this year, taking the total number of international companies in the city to 708.
"The relaxing of the foreign investment approval process will help reduce the complex procedures for international firms and also improve efficiency," said Tan Ruyong, professor, Shanghai University of Finance and Economics.
