Beijing cuts list of restrictions on foreign direct investment in free-trade zones
Move will make it easier for overseas investors to enter some sectors that were previously off limits
As foreign direct investment into the mainland stagnates, Beijing is trying to reignite interest by reducing the number of restrictions on investors in certain areas.
The State Council said in a statement on Friday it had cut its negative list from 122 to 95 in the mainland’s 11 free-trade zones. That means fewer restrictions for foreign capital in the trial free-trade zones – including Shanghai, Zhejiang and Chongqing – where trade and financial rules have been relaxed.
Reducing the list is a bid to make it easier for foreign investors to enter some sectors that were previously off limits, including aircraft and shipbuilding, electric cars, telecoms equipment, reinsurance and theme parks. The Ministry of Commerce a day earlier also said it would create a new foreign investment category.
Complaints from foreign firms of rising costs and intrusive regulations have been growing, and foreign direct investment inflows – measured in yuan – fell by 3.7 per cent in the first five months from a year ago, the ministry said.