China to remove limits on foreign franchises
BEIJING - Starting February 1, China will cancel the limits on market access and separate national treatment for foreign businesses engaging in franchised operations, according to the Regulations of Commercial Franchised Operation promulgated by the Ministry of Commerce.
Except for the special regulations on the procedure, foreign-invested companies may engage in the commercial franchised operation in China on an equal footing with Chinese enterprises in terms of the setup qualification, rights and obligations, information release and advertising.
The regulations, promulgated on December 31, 2004, contain 42 items in nine chapters. They will take effect on February 1, 2005, and iapply to all enterprises engaged in commercial franchised operations in China.
Since 1990s when the franchised operation emerged in China, the country now has more than 1,900 franchised operation systems. They are involved in nearly 60 trades, including supermarkets, convenience stores, household electrical appliance shops, clothing stores, drugstores, bookstores, laundries and color film processing shops.
(Asia Pulse/XIC)
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