(Yicai) Aug. 22 -- China’s government has issued a policy document that stresses the principle of equal market access for both domestic and foreign capital, with the aim of promoting fair competition and boosting confidence among Chinese and foreign businesses.

The document, jointly released yesterday by the Central Committee of the Communist Party of China and the General Office of the State Council, or cabinet, emphasizes adherence to the principle of national treatment. Any restrictions lifted for overseas investors will also be lifted for domestic investors, and vice versa, and any market entry thresholds will apply equally, it said.

The move marks the first time that the central government has issued a specific policy document on building a market access system.

The Hainan Free Trade Port, the Hainan Free Trade Pilot Zone, and other such areas are encouraged to explore safer, more convenient, and efficient coordinated models for domestic and foreign investment access, the document said.

The move ensures the national treatment of foreign investors and gives domestic capital equal access and thresholds, Bai Ming, a member of the Chinese Academy of International Trade and Economic Cooperation's academic committee, told Yicai.

“True national treatment means equating domestic and foreign investments,” which in turn boosts investor confidence, Bai added.

China will gradually relax entry restrictions on access to the service sector, according to the document. Limits will be steadily lifted for those service sector areas that do not involve national security or social stability and where market competition can fully enhance the quality of supply.

In key public service sectors such as education, health, and sports, restrictions will be gradually eased, the document said, while entry standards for fields such as elderly care, childcare, and disability assistance, will be optimized.

There is still a huge scope for opening-up China's service sector, Bai noted. “In health, elderly care, and education, more cooperation with foreign companies can be achieved to jointly expand the market and achieve a win-win situation,” he added.

Industries, including telecoms, education, and health care, are all basic services vital to people's livelihoods, said Zhong Huiyong, an associate researcher at the Shanghai Institute for National Economy. The introduction of foreign capital can promote competition and improve related services, he pointed out.

As China transitions from being a major manufacturing country to a manufacturing powerhouse, there will inevitably be a greater demand for services, Bai said. “The space for our service industry’s development will continue to grow, and its contribution to China’s economy will further increase,” he noted.

No illegal entry barriers can be set up for environmental protection, health, security, quality inspection, and fire protection fields, the document also said. China must also remove unreasonable restrictions on the entry of service sector operators and pull down administrative barriers for cross-regional operations, it added.

Editors: Tang Shihua, Martin Kadiev