Beijing in rethink on contracts

BEIJING is considering re-appraising foreign invested contracts worth US$30 million (HK$231.75 million) or less which have already been approved by regional governments.

The move, being drafted by three central government ministries, is aimed at preventing companies rushing to register projects and sign contracts to qualify for import tariff exemptions.

The exemptions relate to the capital equipment sector and have been available to foreign-funded projects for the past 17 years. But from April 1 they will no longer exist as Beijing tries to create a more level playing field between mainland and foreign-funded projects.

Projects exceeding US$30 million already have to be approved by Beijing.