Trading Haven Finally Within Reach?

With the promulgation by the Ministry of Commerce (MOFCOM) of the Administration of Foreign Investment in the Commercial Sector Procedures (商务部外商投资商业领域管理办法)(effective June 1 2004 _ the Procedures), China has officially opened the area of distribution (i.e., purchase and sale, including import and export, of non-self-manufactured products) to foreign investment, in line with its WTO commitments. In addition to permitting the establishment of foreign invested enterprises (FIEs) specializing in distribution, the Procedures allow existing FIEs to alter their business scopes to include distribution.