China lifts curbs to boost FDI
In a bid to entice foreign investors, China’s state planning agency is loosening FDI curbs in numerous sectors. These sectors include petroleum and gas exploration, agriculture, shipping agencies, cinemas and performance agencies, mining and manufacturing. China has also allowed 100% foreign ownership in some industries where ownership caps previously applied.
Foreign investment in China was previously assessed on a case-by-case basis with approval granted by the local branch of the commerce ministry. Under its ‘negative list system’, investments in industries specified in the list are prohibited or subject to review. This move comes right after the US & China agreed to restart their trade negotiations along the sidelines of the G20 summit.