China eases restrictions on foreign investors, but is it too little too late?
- Beijing opens door to manufacturing and financial services sectors by another notch with shortened ‘negative list’, but business groups say markets are already dominated by local players
- ‘Idea of competing in the most common of banking services is a pipe dream,’ EU Chamber of Commerce says
With effect from July 23, all caps on equity stakes in securities, fund management, futures and life insurance companies will be removed, allowing for total ownership of such businesses by foreign entities, the Ministry of Commerce and the National Development and Reform Commission said in a joint statement issued on Wednesday.
Restrictions on foreign investment in commercial vehicle manufacturing will also be lifted, it said.
The negative list now runs to just 33 items – down from 40 – and is even shorter in China’s designated free-trade zones, according to the statement.
However, China’s news broadcasting, public polling, online news services and education sectors will remain largely off-limits to foreign investment, while telecom operators, nuclear plants and airlines must be majority-owned by Chinese firms.
