(Yicai Global) Jan. 10 -- China has adjusted a series of laws and regulations, relaxing restrictions on foreign investment to ensure the smooth implementation of the measures for reform and opening up in pilot free trade zones.

China will allow foreign investors to engage in the design, manufacture and maintenance of general aircraft weighing 6 ton with up to nine seats in the form of wholly foreign-owned enterprise, said the State Council, China's cabinet. It will remove restrictions on the proportion of investment in the design and manufacture of civilian helicopters weighing 3 ton or heavier. It will also ease restrictions on foreign investors' minimum localization ratio of 70 percent for urban rail transit project equipment investments.

The new policy will also allow the establishment of wholly foreign-owned entertainment premises providing services in pilot free trade zones, added a statement on the government website.

Under the new policy, China will allow foreign investors to invest in the establishment of air transport sales agencies and air cargo warehousing, ground services, aviation food and parking lot projects in the form of wholly foreign-owned enterprise. It will ease restrictions on foreign-funded general aircraft maintenance joint venture, with controlling interest to be held by the Chinese party, and remove the obligations of foreign-invested aircraft maintenance firms to contract for international market operations.

China will also approve the establishment of wholly foreign-owned international shipping, international ship management, international maritime cargo handling, international shipping container station and yard enterprises. Foreign investors will be able to engage in international shipping agency business in the form of joint ventures or cooperatives and the shareholding of foreign investors will increase to 51 percent from the current 49 percent.

The policy will allow qualified Chinese-foreign joint venture travel agencies registered in pilot free trade zones to operate outbound travel business (excluding Taiwan) for Chinese mainland residents. Foreign investors can also engage in gas station construction and operation in sole proprietorship.

Under the changes, China will also lift restrictions on the acquisition and wholesale of rice, wheat and corn by foreign businessmen and remove the requirements for foreign-invested banks to operate in China for more than one year before carrying out yuan-denominated businesses.

The State Council has so far approved pilot free trade zones for Shanghai, Chongqing, Tianjin, Zhejiang, Guangdong, Fujian, Liaoning, Henan, Hubei, Sichuan and Shaanxi.