Investment Updates News
- Foreign investment rules tightened
Date: 9-Nov-2007 Sources: (Shenzhen Daily)
THE government has released new rules to prohibit or limit foreign investment in key industries as it seeks to cool its overheated economy and clean up its damaged environment, domestic media reported Thursday.
In a wide-ranging directive published late Wednesday, the country's key economic developmental agency identified sectors from real estate and financials to oil and rare metals as restricted or off-limits to foreign capital.
Overseas investment that can help China to protect the environment, cut pollution and develop renewable energy will be encouraged, according to the National Development and Reform Commission statement.
Investment in high technology and advanced materials and equipment manufacturing will also be welcome, but those in production industries in which China has mature technologies and capacity will not be encouraged, it said.
The directive highlights the government's latest policy initiative to restructure its export-driven economy whose booming but lopsided growth has for decades relied on government and foreign investment to expand.
China's spectacular economic growth of the last three decades has come at a heavy price to its environment, while surging exports have created a huge trade surplus that is at the forefront of trade spats with major economic partners.
The government has said that China will readjust export-oriented trade policy amid a large trade surplus and surging foreign reserves that have topped US$1.43 trillion.
Under the guidelines, foreigners are barred from investing in non-renewable mineral resources, such as tungsten, tin, antimony, molybdenum, as will investment in small and mid-sized oil refineries.
Refining of copper, zinc, aluminum and rare earths will be restricted and so will the exploration for gold, silver and platinum.
High end real estate such as hotels, villas offices and malls will also be limited, as will that in property agent companies and brokerages as part of efforts to cool soaring real estate prices nationwide.
In the financial industry, the commission confirmed restrictions already in place in life insurance and asset management.
Sponsor Results:
