China to curb ‘irrational’ overseas investment by domestic firms in ‘Belt and Road’ projects
Government says it will provide better guidance on risks to investors to prevent ‘vicious’ competition, corruption
China will strengthen rules to defuse risks for domestic companies investing abroad and curb “irrational” overseas investment in its “Belt and Road Initiative”, the state planner said on Friday.
The National Development and Reform Commission said in an online statement it would provide better guidance on risks to companies investing overseas to prevent “vicious” competition and corruption.
“This is to promote the healthy and orderly development of foreign economic and trade cooperation,” it said in the statement.
Mergers and acquisitions by Chinese companies in countries linked to the “Belt and Road Initiative” have been growing at a rapid rate, even as Beijing takes aim at China’s acquisitive conglomerates to restrict capital outflows.
Chinese acquisitions in the 68 countries officially associated with President Xi Jinping’s signature foreign policy totalled US$33 billion as of Monday, surpassing the US$31 billion for all of 2016, according to Thomson Reuters data.