China continues to give support to foreign investment, writes Xu Ping, senior partner of King and Wood, China’s largest law firm, in China’s Law Insight. Xu Ping comments on the new investment rules, released by the State Council on April 13:
These new guidelines for foreign investment in China encourage foreign funds to flow into high-end manufacturing, hi-tech and eco-friendly sectors and to the central and western areas of the nation. The guidelines restrict investment into environmentally unsound projects and in sectors suffering from overcapacity. Meanwhile, the new guidelines also promise more favorable policies for foreign-funded companies, including an array of new tax incentives…
Through these new guidelines, China reiterates its support for foreign investment and could be a response to some complaints that China was reversing its foreign investment policies in the wake of several high-profile matters involving Google and Rio Tinto. These guidelines widen market access to foreign investors and better direct the inflow of foreign capital while also improving China’s global competitiveness and promoting more efficient foreign investment into economically vital areas. Naturally detailed rules to implement these initiatives are still to come out.
More details here.
Xu Ping is a speaker at the China Speakers Bureau. When you want her to share her insights at your conference, do get in touch.