Date
25 May 2017
China's foreign capital utilization fell 1.6 percent in July. The government is trying to revive spending by slashing limits on foreign investment. Photo: Global Times
China's foreign capital utilization fell 1.6 percent in July. The government is trying to revive spending by slashing limits on foreign investment. Photo: Global Times

China cuts limits on foreign investment to boost spending

China is opening up to more foreign investors to counter sliding confidence in the outlook for the world’s second-largest economy.

It will continue to open its education, finance, culture and manufacturing sectors to foreign investors, Bloomberg reports, citing Vice Minister of Commerce Wang Shouwen.

Measures will focus on boosting investment in inland, western regions, he said.

Foreign capital utilizatrion fell 1.6 percent in July. While global investors fueled China’s economic boom by building factories, shops and infrastructure in the nation since 1978, some lucrative service sectors such as finance and telecommunications are largely closed to them.

China also is considering using a nationwide “negative list” to relax those regulations, which means only industries listed are closed to investors from overseas.

The negative list is now applied only in free-trade zones, while other areas can limit all sectors that aren’t specifically cleared.

As foreign investment growth in China has slowed, the nation’s outbound investment has surged.

Chinese investment overseas is mainly through mergers and acquisitions, Wang said.

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