China Cut Foreign Investment Restrictions after ‘Two Sessions’

In order to pursue a further open up the market, Chinese government decide to cut the number of industries in which it restricts foreign investment.

During time of ‘two sessions’ a new Catalog for Guidance of Industries for Foreign Investment has passed by Chinese State Council, China’s cabinet. It will come into force from April 10, the National Development and Reform Commission said on Friday.

Such guidelines will lead an increase or decrease of the flow of foreign investment into industries, and they will lead both service and manufacturing sectors to be more accessible experts forecasted.

List of manufacturing includes the ethylene, papermaking, electric transformation equipment industries. The List of services includes the e-commerce, logistics, transportation, finance, and other culture sectors. The number of restricted sectors has been cut from 79 to 38.

During last year, China attracted more foreign direct investment than any other country all over the world. It is worth of $119.6 billion, up to 1.7 percent year-on-year.

China had approved three free trade zones in Guangdong, Fujian and Tianjin by the end of last year, and is likely to approve more. New trade zones will largely based on the Shanghai model, and will be set up mainly in inland cities and border regions, said Wang Dong, deputy director-general of the department of foreign capital and overseas investment under the NDRC.