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Invest-West Rules to Lure Overseas Funds
China is working on rules which will allow overseas investors to enjoy better advantages in the development of the country's western regions in such sectors as banking, insurance, telecommunications and will also offer them bigger controlling stakes in infrastructure projects.
Overseas bankers may be allowed to conduct loan business in renminbi in the hinterland's major cities, while overseas investors will also be able to get in the market with investment funds, officials familiar with the rules told China Daily Wednesday.
Though minor revisions may be made, as related ministries in Beijing are consulting on the details of the guideline since it was delivered to the State Council earlier this year, Li Zibin, a top policy-maker of the "go-west'' campaign, confirmed Wednesday that the regulations will be unveiled by this year-end.
"Overseas investors will have more freedom in their business operation and financing than those involved in the coastal areas,'' said Li.
The regulations will detail a barrage of rules on business start-up, application, approval, taxes, business range, fund access and what is off-limits, all the things that foreigners must know before opening up a business in the region.
Right now, the central government has pumped in billions of dollars to upgrade inadequate infrastructure, but experts have said State subsidies and State-owned bank loans are far from being enough to fill capital needs over the next few years.
Zhao Gongqing, vice-mayor of Chongqing Municipality in the country's southwest, who is now in Xi'an attending the Western Forum of China, said the regulations will be a timely rain, as heavy funding is needed for a flurry of infrastructure and ecological projects and overseas firms need wider access to banking loans onshore.
About 80 global giants of the Fortune top 500 have invested into the western hinterland, hoping to tap into the growing desire for economic prosperity among its 300 million people.
And the early birds really catch the worms. Companies like Siemens, Coca Cola and Ericsson have chipped into the profits.
Jan Malm, president of Ericsson's China operation, said: "It (the west) is a big market opportunity and I think China is very serious about the go-west campaign, which will make China more competitive as an investment target for the international market.''
Source: China Daily
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