China loosens on foreign investment
Kane Davis Cooper ̶ Earlier this week, China took another big step forward in opening up the nation to increased foreign investment in its free trade zones by around thirty percent.
Accessibility has been increased in its mining, manufacturing and service sectors. Restrictions were also lifted for foreign companies making electric vehicles and related products.
In updated statement distributed by both the National Development and Reform Commission and Ministry of Commerce, the government has taken away 30 formerly controlled items when compared with the previous guidelines, with 63 still remaining on the file.
Some of the areas where restrictions have been eased include equipment for railways, motorbikes and ethanol when used as a fuel according to the information provided.
Other important areas where control restrictions have been scrapped are in the field of oil and gas, including shale, oil sands and gas.
The new rules will come into practice at the end of July.
Last year, Beijing started to indicate that it wanted to allow greater access to make the second biggest global economy even more accessible to overseas investment, naming the service, mining and manufacturing sectors at that time.
The actions come at a time when President Xi Jinping is looking to promote China as a world leader in combatting isolationism and defending globalization.
As part of the pay-off for China welcoming more overseas investors, it also expects that other countries should equally improve the treatment Chinese investors receive when investing internationally.
The Chinese Premier Li Keqiang said that China will enable more overseas investment by loosening restrictions on the investments that foreign companies can take in Chinese undertakings and also makes it simpler for them to register new companies.
The list of remaining restrictions now amounts to 95 items.
This does, however, only mean anything in the FTZ’s (Free Trade Zones) and are not across the board.