The mainland may ease rules on foreign investment in the property sector as one of several ways to boost sliding foreign direct investment after the real estate bubble burst, according to a newspaper report.
Concerned about a further slump in foreign direct investment, the Ministry of Commerce had submitted proposals to the State Council for more measures to attract investment, the Beijing-based China Times, citing sources from the ministry, reported at the weekend.
The proposals, listing 42 rules covering tax, foreign exchange and regulatory supervision, call for an easier approval process for foreign investment.
One of the biggest changes is to loosen regulation on foreign investment in the property sector.
Other suggestions include giving foreign investors access to the high-technology industry and relaxing checks on individual foreign investment, the paper said.
Foreign direct investment in China, the world's third-biggest economy, dropped 17.8 per cent last month from a year earlier to US$6.38 billion, the eighth straight monthly decline amid the global recession. But the drop was less steep than in April, when inflows fell 22.5 per cent year on year.
In the first five months, foreign direct investment fell 20.4 per cent year on year to US$34.05 billion.