In a move to increase its global competitiveness and improve transparency, China is planning to loosen its restrictions on foreign investment.
“This is a step in the right direction,” says David Kunselman, Senior Portfolio Manager with Excel Funds Management in Mississauga. “It will facilitate foreign participation in sectors which will benefit the Chinese economy.”
The China National Development and Reform Commission (NDRC) plans to cut the number of sectors in which the country limits foreign investment from 79 to 35, opening up areas such as real estate, steel, oil refining, paper manufacturing and premium spirits.
Restrictions on foreign participation in financial services in areas such as finance companies and insurance brokerages, which will still be subject to Chinese regulations, will also be removed.
The draft NDRC document added Chinese legal affairs consulting, tobacco and cultural relics businesses to the list of restrictions. However, in total, it lists 349 sectors that welcome foreign investment, including vocational training, homes for seniors, and services for children and the disabled.
The NDRC is seeking feedback on the proposed revisions until Dec. 3.
Source: The Excel Investment Counsel via http://www.reuters.com/article/2014/11/05/us-china-investment-idUSKBN0IP01Z20141105