| China continues to broaden foreign investment limits |
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| Friday,June 30,2006 Posted: 17:08 BJT(0908 GMT) www.chinanews.cn |
Chinanews, Beijing, June 30 - The "Supplementary Regulations on the Establishment of Investment Companies by Foreign Investors" that was preliminarily announced by the Ministry of Commerce (MOFCOM) early this month will come into force officially on the 1st of July. Industry experts assess that it would cause the growth recovery in foreign investments this year to continue to increase.
According to the supplementary regulations, the scope of foreign investments in China is further expanded. Investment companies would be allowed to undertake services that are outsourced by overseas companies, and the products that they export are eligible for export rebates according to relevant regulations. The aforesaid rights were not stated expressly in previous editions of relevant regulations.
The supplementary regulations also provide that investment companies which have been designated as regional headquarters are allowed to undertake operational and financial services for leases; companies which serve as financial centers and capital management centers and have been designated as regional headquarters are not only eligible to carry out consolidated management for the exchange funds of relevant companies within the country, but can also open offshore accounts in banks within China.
Jin Bosheng, director of the foreign investment research department under the Chinese Academy of International Trade and Economic Cooperation of the MOFCOM, expressed that the above-mentioned measures would encourage foreign investors to establish regional headquarters in China, which would attract foreign investments towards China and help to raise China's status in the international market.
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