Background to retailing in the PRC and recent policy changes

This article is intended to provide a general guide to the subject matter. Specific advice should be sought about individual circumstances. Further information or advice may be obtained from Linklaters & Paines, Hong Kong office, 14th Floor, Alexandra House, Chater Road, Hong Kong; telephone: (852) 2842 4888; fax: (852) 2810 8133; contact David Mullarkey or Jeremy Parr.

The following article examines the background to foreign involvement in retailing in the PRC.

Access to the PRC retail market was previously restricted. Foreign companies were not allowed to establish direct retail outlets in the PRC. Foreign investors were encouraged to establish export-oriented businesses to earn foreign exchange, and the business of importing and selling foreign consumer goods in the PRC market was largely reserved for PRC state-run, import-export corporations. Generally, if foreign businesses wished to sell products in the PRC, they would have to go through such import-export corporations