China plans to suspend some laws on foreign investment in proposed new free-trade zones including Shanghai as part of Premier Li Keqiang’s drive to open up the economy to sustain growth. The changes would provide innovative ways of opening up the economy, remove unnecessary administration and help transform the state’s role in the economy, according to a government statement. “The Chinese government knows that having foreign investment is a very good thing and they want this to be an attractive market for strategic and financial investors,” said Kent Kedl, Managing Director for Greater China and North Asia at risk consulting firm Control Risks. “Many foreign investors are concerned about the bureaucracy and lack of clarity around regulations, that’s probably the biggest concern when they come to China”, he said. Foreign direct investment (FDI) in China fell 3.7% last year to USD111.7 billion from a record USD116 billion in 2011, government data shows. Investment rose 4.9% in the first half of this year to USD62 billion. If the draft is approved by the Standing Committee of the National People’s Congress (NPC), some laws on foreign investment, sino-foreign joint ventures and cooperative enterprises in the free trade areas, would be suspended. The statement did not give a time frame or additional details about the changes, which will apply to the proposed zone in Shanghai and any potential new ones. A 13-year ban on the manufacturing and sale of video-game consoles in China would be lifted, on the condition that companies make the products in the new Shanghai area. Reforms would also include interest-rate liberalization and full convertibility of the yuan. Besides Shanghai, other cities, including Tianjin and Xiamen, are seeking approval for free-trade zones.