New Vehicles Proposed for Foreign Engineering Services Companies in China

Originally published September 2005

Following the issue of Decrees of 113 and 114 regulating the foreign invested construction and engineering design sectors, the Ministry of Construction of PRC (MOC) has recently proposed new vehicles open to foreign engineering services companies.

On 19 September 2005, the MOC published a draft of the Administrative Regulations on Foreign Invested Construction Engineering Services Enterprises (the "Regulations") for public comment. The Regulations proposed to allow foreign engineering services companies to set up three types of foreign invested engineering services enterprises ("FIESEs"), namely construction supervision,tender agent services and cost consultancy enterprises. This is a further step to open up the market for engineering services in accordance with China's commitments to the WTO. It is proposed under the Regulations that foreign companies may apply for the setting up of joint venture FIESEs when the Regulations come into effect and