Chinese capital relaxes grip on foreign-owned nightclubs, entertainment spots and bars
China’s cabinet has removed a 49pc investment cap on foreign investors setting up entertainment venues in Beijing
China has drastically eased restrictions on foreign investments in entertainment venues including nightclubs, karaoke and sports bars in Beijing, giving residents in the capital city a wider access to world-class cultural products and leisure services.
In a circular to the Beijing municipal government, the State Council – or Chinese cabinet – scrapped the investment cap of 49 per cent for foreign investors applying to set up entertainment and performance venues in the city, a move that could allow them a freer play in the cultural sector where the government has until now, kept a tight grip.
Still, the relaxation comes with conditions – that the foreign-controlled entertainment businesses and the venues must be established in designated areas. No further details are available on the locations.
“The relaxation of the rule in Beijing is a fresh sign that top-class entertainment services are welcome,” said Gong Zhenhua, a partner at Shanghai Ronghe Law Firm. “The key question is whether the foreign businesses will be given access to the busiest streets or those developed regions in Beijing.”
The new rule was endorsed and published by the cabinet at the end of 2017, and became effective immediately. It remains unclear whether it will extend to other parts of the mainland.
In Shanghai, foreign investors were granted a widened access to the entertainment sectors after the city launched the country’s first free-trade zone in late 2013.