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Areas Picked for Logistics Partnerships
The Ministry of Foreign Trade and Economic Co-operation (MOFTEC) recently said that eight trade bureaus would be able to start accepting applications for Sino-foreign joint ventures or co-operative firms.

They include bureaus in Jiangsu, Zhejiang and Guangdong provinces, and in the cities of Beijing, Tianjin, Chongqing, Shanghai, and Shenzhen.

Overseas investors will be limited to a 50 percent share.

The firms are expected to integrate transport, storage, loading, processing, packaging, delivery, information handling, and imports and exports as a complete supply chain with one-stop logistics services.

The Chinese mainland partner, or the largest overseas shareholder, will need to have experience in international trade and international cargo or agent services.

In addition, the Chinese mainland partner, or the largest overseas shareholder, will need experience in transport or logistics.

The firms are expected to have at least US$5 million in registered capital as well as a fixed location of operations and the necessary facilities.

This news could prove to be of great help to overseas logistics firms that have been looking at the Chinese mainland market for a long time, industry insiders have said.

Kerry Logistics Network, an affiliate of Hong Kong-based Kerry Group, started a logistics joint venture with Shanghai Caohejing High-Tech Park on Friday to expand its business there.

Shanghai Kerry Caohejing has invested about US$30 million and each side holds a 50 per cent stake.

Kerry Logistics already has large logistics centers in Beijing and Shenzhen.

The local trade bureaus are expected to give their preliminary ideas to MOFTEC for approval at least 10 working days after receiving applications for logistics joint ventures and co-operative firms.

MOFTEC then has to make a decision within 30 working days.

After approval, a firm can operate for 20 years, before applying for an extension.

(China Daily July 30, 2002)

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