Foreign investors will have to gain security clearance from the government for investments that are considered harmful to national security, according to the draft foreign investment law released by the Ministry of Commerce (MOFCOM). The government will set up a joint ministerial mechanism to carry out security reviews on foreign investment similar to the review system in foreign countries. The draft law lists investments in sectors such as defense, energy, grain and information technology as potential sectors for reviews. The full text is available on the Ministry’s website, and the public can submit feedback until February 17 at the website www.mofcom.gov.cn, or by sending an e-mail to investmentlaw@mofcom.gov.cn, a fax to 010-65198905 or letter to the Ministry. The draft law still needs to be submitted to the National People’s Congress (NPC) for final review. Commerce Ministry Spokesman Sun Jiwen said the draft law also eases restrictions on foreign investors and grants them easier access to the Chinese market. Foreign companies will receive pre-established national treatment (equal to domestic companies) under the new regulations, and the current case-by-case approval system would be replaced by a “negative list”. Sun said these moves would create a level playing field for foreign and domestic investors, as well as enhance security reviews, the China Daily reports.

Japan’s third-largest trading house Itochu Corp and Thailand’s Charoen Pokphand Group are planning to invest USD10 billion jointly in CITIC Group, China’s biggest conglomerate. They will acquire a joint stake of as much as 20%. The CITIC investment will be Itochu’s biggest in China and it ranks as CP Group’s second-largest after the HKD72 billion purchase of a minority stake in Ping An Insurance Group. Itochu said the company and CP Group plan to buy around 2.5 billion shares in CITIC for HKD34.4 billion in April, and another 3.3 billion shares for HKD45.9 billion in October. The deal comes as CITIC has been broadening its investor base as part of Chinese President Xi Jinping’s efforts to reform state-owned enterprises (SOEs). CITIC completed a restructuring in August by injecting around USD36 billion worth of assets into a Hong Kong-listed unit.

Bilateral trade between China and the United Kingdom hit a record high of USD80.9 billion, up 15.3% year-on-year in 2014, and China’s investment in the UK also saw robust growth, according to Jin Xu, Minister Counselor of the Economic and Commercial Section of China’s Embassy in Britain. Bilateral trade has doubled since 2009, and the growth rate in 2014 was the fastest among European countries, Jin added. The target for this year is USD100 billion. The UK is China’s second-largest trading partner in the European Union. Trade in vehicles, aviation and communications expanded last year, and China became Britain’s largest supplier of electro-mechanical products. China also surpassed the UK to become Jaguar Land Rover’s largest market. The past year saw some key mergers and acquisitions (M&As) and China’s investment in the UK exceeded USD7 billion, Jin said. Nanjing-based Sanpower Group, owner of the Nanjing Xinjiekou department store, agreed in April to take control of retailer House of Fraser in a deal valuing the company at more than GBP450 million, including GBP250 million of debt. It was the biggest international retail acquisition by a Chinese company. As of December 31, cumulative investment by Chinese companies in the UK exceeded USD40 billion, making the UK the largest recipient of Chinese investment in the EU. China-UK financial ties were also strengthened in 2014, as the China Construction Bank (CCB) was designated as the first Chinese bank to provide yuan-clearing services in the UK, and the UK government issued a sovereign bond in yuan, becoming the first Western country to do so. Lloyd’s has been awarded a license to establish a branch in Beijing and China’s Industrial and Commercial Bank (ICBC) and China Construction Bank (CCB) have been granted a license to set up branches in London.

In the seven months since the free trade agreement (FTA) between Switzerland and China came into force, it has greatly helped to accelerate business collaboration between the two countries. The agreement calls for zero tariffs on 99.7% of Chinese exports to Switzerland, and 84.2% of Swiss goods sent to China. “The high public awareness created in Switzerland by the agreement has led to more visibility for business opportunities for Swiss companies in China,” said Alain Graf, Director of Swiss Business Hub in China, a government organization charged with the promotion of exports and investments in China. Switzerland is the second European state and the third member of the Organization of Economic Cooperation and Development (OECD) to sign a free trade agreement with China. Iceland signed a deal in 2013; New Zealand signed one six years earlier. Sonja Wollkopf Walt, CEO of Greater Zurich Area, said the free trade agreement also goes far beyond dismantling tariffs by fostering collaboration in fields including science, technology, research, education and culture. The value of Swiss machinery exported to China rose 9.1% in the first 10 months, to CHF2.3 billion. Overall exports from Swiss companies to China rose 11.2% to CHF7.5 billion in the same period, and imports from China to Switzerland rose 7.7% to CHF10 billion, the China Daily reports.

More than 3 million people are dying prematurely in China each year from chronic non-communicable diseases, the World Health Organization (WHO) said. Such diseases, including lung cancer, strokes, heart disease and diabetes, accounted for 8.6 million deaths in China in 2012. The WHO said that the prevalence of many key risk factors in China is “worryingly high.” “This new report is a dramatic wake-up call,” Bernhard Schwartlander, WHO’s Representative in China, said. Chronic non-communicable diseases can be prevented simply by changing common unhealthy lifestyle habits: smoking, excessive alcohol consumption, unhealthy diet, and not enough physical activity. In 2011, the World Bank said that the economic benefit of reducing cardiovascular diseases by 1% per year from 2010-2040 in China could generate more than USD10.7 trillion, equivalent to 68% of China’s real GDP in 2010. This “lifestyle disease” epidemic “causes a much greater public health threat than any other epidemic known to man,” said Shanthi Mendis, lead author of the WHO’s Chronic Diseases Prevention and Management report.