China to relax supervision of outbound investment
July 24, 2017 Category Foreign investment, Weekly
China will relax its supervision of outbound investment projects, with attention focusing only on investment in several key industries such as property, hotels, entertainment, cinemas and sports clubs, according to Yan Pengcheng, Spokesman for the National Development and Reform Commission (NDRC). He added that companies planning to invest in those industries in foreign countries should “make cautious decisions”. Companies investing abroad in these sectors will have to submit additional documents to win approval, according to the Ministry of Commerce (MOFCOM). The announcement narrows the number of areas facing such scrutiny. China’s non-financial outbound investment plunged by 45.8% year-on-year in the first half to USD48.19 billion. During that period, China’s real estate investment in foreign countries fell by 82.1% year-on-year, and the outbound investment in culture, sports and entertainment decreased by 82.5% year-on-year. “Projects involved in the Belt and Road Initiative will be encouraged in particular,” Yan said. Bai Ming, Deputy Director of the Research Institute under the Ministry of Commerce, said it makes sense for the government to keep an eye on certain types of outbound investment projects because many domestic companies lack enough knowledge, including on political risks and the business environment in foreign countries, the Shanghai Daily reports.
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