China to further relax curbs on foreign investment

[BEIJING] China on Wednesday removed the number of restricted items for foreign investment by about a third, allowing more access into its services, manufacturing and mining sectors.

In new guidelines jointly issued by the National Development and Reform Commission and Ministry of Commerce, the government removed 30 restricted items compared with the 2015 version, leaving 63 on the list.

Restrictions lifted in the manufacturing sector include those for rail transportation equipment, motorcycles, edible fats and oils, and fuel ethanol, according to the statement.

China will also lift restrictions on foreign investment in unconventional oil and gas development, including shale oil, oil sands and shale gas.

The new guidelines will take effect from July 28.

Since the end of last year, the government has promised to take steps to further open the world's second-largest economy to foreign investment, offering increased access to its services manufacturing and mining sectors.

The measures come as President Xi Jinping seeks to project China as a world leader in fighting protectionism and defending globalisation.

The government has also said that as China opens its doors wider, it expects to get fairer treatment for Chinese firms investing overseas.

Premier Li Keqiang said this week Beijing will facilitate foreign investment by relaxing restrictions on the stakes overseas firms can hold in China ventures and making it easier for them to register new companies locally.

REUTERS