The Chinese government will gradually scrap restrictions on the
destination, stock ownership and business scope of foreign
investment in the service sector, a senior economic planner said in
Beijing Saturday.
"China will stick to the open-up policy and pay more attention
to quality of foreign investment instead of quantity," said Zhang
Mao, vice minister of the National Development and Reform
Commission (NDRC).
According to the vice minister, existing restrictions on foreign
investment in key industries concerning China's national security
and people's livelihood will remain unchanged.
"The point (the transformation from quality to quantity) is to
absorb advanced technologies and management skills from foreign
countries," he said, "and foreign investors are expected play a
positive role in this regard,"
The vice minister told a multinational CEO roundtable Saturday
that foreign investment would be encouraged to enter high-tech,
equipment and new material manufacturing and logistics. The central
and western hinterlands are open for foreign investment with more
incentives.
But he stressed that foreign investors are restricted from
setting up businesses for export only in China and banned from
creating polluting or energy-guzzling projects, Zhang said.
The authorities will help create a sound investment environment
by simplifying examination and approval procedures and steadily
accelerate free exchange of the Chinese currency under the capital
account, said the vice minister.
The government would establish a cross-department supervision
mechanism over foreign mergers and acquisitions, in an effort to
safeguard national economic security, he said.
(China Daily November 17, 2007)
