New Five-year plan will encourage FDI into China, promises Minister

21/03/2016

China's Minister of Commerce Gao HuchengFDI into China: China will move to relax restrictions preventing foreign investment in services sectors including construction, accounting, design and auditing, its Minister of Commerce Gao Hucheng told the China Development Forum 2016 yesterday. The authorities in Beijing will also ease access for foreign capital in sectors including banking, insurance and securities, and foreign investment will be encouraged in advanced manufacturing, high technology, energy saving and environmental protection.
“As the current level of China’s opening-up is not that extensive ..it is still an important and urgent task for the country,” Gao said, adding that attracting overseas investors was a key aspect of the country’s 13th Five-Year Plan that runs from 2016 to 2020. Efforts to establish rules to secure the legal rights of foreign investors are also to be stepped up.
Chinese zombie companiesThe deputy director of the Department of Information at the China Center for International Economic Exchange Wang Jun struck a note of caution, however. “Encouraging foreign investment in the financial sector does not necessarily mean removing all the limits,” he warned, but also suggested that foreign companies might be encouraged to play a bigger role in the ongoing supply-side reforms. “Foreign investors could cooperate with Chinese companies in dealing with ‘zombie companies’ by providing feasible solutions.” 
Overseas companies are also likely be encouraged to move inwards from the coast and help develop the country’s western and central regions, where their investment currently only accounts for some 16% of the total foreign capital in the country.

Source: globaltimes