18:40 GMT +323 October 2019
Listen Live

    Chinese Authorities Preparing Code of Conduct for Outbound Investment - Reports

    © Sputnik / Alexander Yuriev
    Get short URL
    0 10

    China continues to open its economy to foreign investors, improving regulations to assess risks to provide better counsel to its businesses.

    BEIJING (Sputnik) — Chinese authorities will soon publish a new "code of conduct" to help the country's businessmen wishing to invest overseas better assess risks, the China Daily news outlet reported on Friday, citing a government source.

    The "code," which is part of China's larger program to improve regulation on outbound investment, will help businesses identify risks they may encounter in foreign countries.

    READ MORE: How China's Plan to Open its Economy to the World Could Be Mutually Beneficial

    On Tuesday, the National Development and Reform Commission released a report, which suggested that China's foreign investments had been growing at a blistering pace in the last few years, but some of the investments should have been assessed more critically.

    According to the report, China will boost cooperation with other countries on legal risks to provide better counsel to its businesses.

    China's Change of Economic Rules After Trump's Visit

    Beijing has recently unveiled new investment rules, aimed at greater openness and transparency, decentralization and encouraging small private investment, in order to boost its international competitiveness and increase the value of its asset management market by 2030.

    READ MORE: Mainland China Seeks New Rules to Encourage Small Investment as Debt Mounts

    This position was voiced by Chinese Deputy Finance Minister Zhu Guangyao in early November, who claimed that the government would lift limits on foreign ownership stakes in securities, fund managers and futures companies from the current 49 percent to 51 percent and end restrictions after three years.

    Western analysts have praised the initiative which came a day after US President Donald Trump's visit to China. During the visit, Trump called on his Chinese counterpart Xi Jinping to allow American companies greater access to the Chinese market.

    These measures seem to be one of the biggest concessions by China since the country entered the World Trade Organization (WTO) in 2001. The economic liberalization required by WTO rules had weakened the positions of its domestic companies. In response, the government has used different restrictive measures against foreign investment and capped the participation of foreign capital as a protective measure.    

    "code of conduct", investments, risks, China
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik