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China to Remove Policy Barriers for Overseas-Funded Companies: Official
China will abolish three rigid rules, namely, "local content" "foreign exchange balance" and "external sale proportion" in relation to overseas-invested companies after its entry into the WTO, said Hu Jingyan, director of the Foreign Investment Department under the Ministry of Foreign Trade and Economic Cooperation (MOFTEC) on September 18.
Pending its WTO accession, the Chinese government is revising relevant laws and regulations. The three major policy barriers cancelled this time were done in accordance with relevant WTO provisions. So-called "local content", "foreign exchange balance" and "external sale proportion" mean that in investing in China, foreign-funded enterprises no longer require an equivalent proportion of Chinese investment; the Chinese government will no longer impose restriction on foreign-funded enterprises' use of foreign exchange; and no regid rules will be set on the proportion of external sales of the products of foreign-funded enterprises.
He also pointed out that the Chinese government pursues an open policy in the field of service trade, which encompasses banking, insurance, telecommunications and commerce. But with regard to military enterprises and the ideological field, such as cloisonne arts and crafts and other traditional industries, the Chinese government will not open them to foreign businesses, not at present, nor in the future.
By PD Online Staff Huang Ying
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