A new pilot scheme will allow businesses from foreign countries to set up enterprises in China without a mainland partner for the first time. The change in regulations initially applies only to the Hong Kong/China border at Lowu, Shenzhen but is likely to be extended to other areas of the region.

The development was announced by the deputy director of the registration branch of the Shenzhen Bureau of Industry and Commerce at a seminar in Hong Kong. He clarified the situation by adding that any foreign investor - including those from Hong Kong, Macau, and Taiwan - could register with the city to set up a business on the mainland side of Lowu, which straddles the border.

Some individual provinces and cities have shown flexibility in the joint-venture law before, usually linked to the scale of investment, but Schenzen’s pilot scheme represents a new development. The change means that any foreign businessman who has either purchased commercial property in mainland Lowu or has leased premises for more than a year will be eligible for solo business registration and enjoy local tax benefits.