China aims to make it easier for foreign firms to invest
January 15, 2019 Category China News Round-up, Weekly
China will reduce restrictions on foreign investment and address difficulties facing foreign companies investing in the country, Commerce Minister Zhong Shan said in an interview he gave to state media. China would allow full foreign ownership of companies in more areas of the economy and would reduce the number of industries in which foreign investment was restricted or barred. The negative list, which restricts foreign investment in certain industries, will be further shortened in the 12 pilot free trade zones and nationwide.
Foreign direct investment (FDI) into China rose by 3% year-on-year to USD135 billion in 2018, Zhong said in the interview. That would mark a slowdown from growth rates of 7.9% in 2017 and 4.1% in 2016. But Zhong said China had maintained stable FDI growth “against a gloomy global climate”, noting that total FDI around the world had slumped by 41% in the first half of last year.
Minister Zhong added that the Ministry would further stimulate domestic consumption this year, with measures to promote urban consumption upgrades, tap into the potential in rural areas, foster modern supply chains, and boost the consumption of services. “The Chinese market has huge potential and sound prospects,” Zhong said. “China is steadily marching towards the largest country of goods consumption.” He added that “properly handling” trade frictions with the United States was a major task for the Ministry in 2019. He said other priorities of the Commerce Ministry this year included holding the second import expo, and pushing forward pilot free-trade zones and the Hainan free-trade port. Zhong said the Commerce Ministry would push for the introduction of a foreign investment law as soon as possible, improve the handling of complaints from foreign firms, and encourage foreign investment in manufacturing and hi-tech. MOFCOM would also encourage foreigners to invest in central and western China, he said.
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