Supplementary Regulations(Six) of the Regulations on Foreign Investment in Civil Aviation has been released and will become effective from May 1, 2017.issued by the Civil Aviation Administration of China, the Ministry of Foreign Trade and Economic Cooperation and the State Development Planning Commission

The following supplementary regulations have been made to the Regulations on Foreign Investment in Civil Aviation(promulgated by the Civil Aviation Administration of China, the Ministry of Foreign Trade and Economic Cooperation and the State Development Planning Commission):

1. Service providers from Hong Kong and Macau will be allowed to exclusively invest in aircraft maintenance, inflight meal, air cargo and warehouse, parking lots and ground service(projects associated with security are not included). The request that business permission of Hong Kong and Macau service providers who set up joint-ventured computer reservation system(CRS) should have an economic needs test has been cancelled.

2. In pilot free trade zones such as Shanghai, foreign merchants are allowed to exclusively invest in and set up air transportation sale and deputy enterprises; foreign merchants are allowed to exclusively invest in and set up projects in air cargo and warehouse, ground service, inflight meals and parking lots; the restriction that foreign investments in maintenance of general-purpose aircraft should be controlled by Chinese parties has been relaxed, so that foreign merchants are allowed to invest in maintenance projects of general-purpose aircraft in the form of joint venture; the obligation request that the foreign merchants who invest in aircraft maintenance should take on international maintenance market businesses has been cancelled.

3. The supplementary regulations would become effective from May 1, 2017.