China revises rules on foreign investment, eliminating 30 restrictions

The new guidance for foreign investment relaxing 30 restrictions on overseas capital is a crucial move for China to actively open up and improve domestic investment environment, official said.

"The catalogue of industries to guide foreign investment" issued by the National Development and Reform Commission in conjunction the Ministry of Commerce, further opens services, manufacturing and mining sectors. After reversion, 30 restrictions are eliminated, with the number remaining at 63.

According to the rule, foreign-funded companies investing in non-restricted sectors outlined in the guideline will no longer have to go through approval procedures, Sun Jiwen, spokesman of the Ministry of Commerce (MOFCOM), said at a regular press conference on Thursday.

China will continue to promote foreign investment into sectors that coincide with the county's industrial upgrading and encourage foreign companies to join the "Made in China 2025" strategy and the country's innovation-driven development, according to Sun.

Besides, the MOFCOM will further streamline approval procedures for foreign-funded companies' mergers and acquisitions in China to improve domestic business environment and better support foreign-funded companies to contribute to real economy, Sun said.

In the first five months, 12,159 foreign-funded companies are newly established in China, up 11.9 percent year-on-year, data from the MOFCOM showed on June 15.