Regulation Of Foreign Investment On China

1235 Words Apr 29th, 2016 5 Pages
Regulation of foreign investment in China
Foreign investment in china has been adversely affected by the global economic and financial crisis since 2008. In the first 6 months of the year 2009, foreign investment in china dropped by 17.9%. There has been a notion that china does not well receive foreign investors compared to the past. Reports of abolishment of special treatment for foreign investors have been reported. However we all agree that regulation of foreign investment is important to ensure sanity.
The Chinese government regulates foreign investment through foreign investment catalogue revised regularly by the China’s National Development and Reform Commission and the Ministry of Commerce. This catalogue clearly states the foreign investments that it prohibits, restricts and encourages. Those investments that are not mentioned are allowed in China. The encouraged investments receive certain special treatments. On the other hand restricted ones are subjected to strict approval requirements.
Among the encouraged investments are investments in the high economic-value sectors they include: export-oriented, selected modern services sectors, technology research and development, vocational skill training, information consulting, intellectual property services banking services securities, insurance, education and sports, health care, tourism and home service. The aim is to boost development of domestic technology and innovation and to develop the economy.
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