China simplifies restrictions to foreign investment
The Asian country seeks to facilitate its entry into the global economic market by simplifying import regulations
In an initiative considered an advance towards economic opening, China has just announced the reduction of restrictions on foreign investment. This means that now there will be fewer sectors and companies subject to prohibitions.
The well-known “Negative List for Market Access” contains 151 articles and 581 concrete measures. The changes were announced on Tuesday by the Ministry of Commerce and the National Development and Reform Commission (NDRC). In conclusion, there will be four sectors of the industry totally restricted to foreign investment and the rest will be subject to government approval.
With the modification to the list the Chinese authorities seek to “improve reciprocity for foreign companies, which have complained repeatedly that Chinese firms enjoy many more freedom and facilities to operate in their territories.”
However, we must remember that the Negative List for Foreign Investment, which investors must respect, is in force since July of this year.
According to information from the NDRC, the industries that must obtain approval are: manufacturing, transportation and storage, retailers and wholesalers, finance, culture and entertainment. The opening applies to banking, heavy industry, automotive and agriculture.
In any case, China seeks to optimize areas such as the allocation of resources in addition to creating a stable, fair, transparent and predictable business environment for all. This was stated by the director of the Department of Economic System Reform of the NDRC, Xu Shanchang.
M.Pino
Source: Bancaynegocios
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