China strengthen supervision on outward investment

Chinese Officials from National Development and Reform Commission, Ministry of Commerce, People’s Bank and State Administration of Foreign Exchange jointly accept interview on strengthening supervision on outward investment in current situation on December 6.

Q: It is said that the Chinese departments will strengthen supervision on outward investment in current situation. How would you comment on it?

A: Our policy and management principles on outward investment are clear. We encourage business to engage in international economic competition and cooperation, integrate into global industrial chains and global value chains, adhere to the principles of “business entity, market principle, international customs and government guide” and promote reform on “streamline administration and delegate power, Strengthen Regulation and Improve Service”. Those policies and principles have not changed. We support eligible enterprises to conduct practical and legal outward investment, engage in “Belt and Road” construction and international capacity cooperation, promote domestic economic transformation and upgrading, and deepen mutually beneficial cooperation. Meanwhile, supervision departments also pay close eyes on some non-rational investment tendencies in real estate, hotel, film cinema, show business, and sport club. They also closely watch the potential risks in the big investment in non-leading industry, limited partnership outward investment, and outward investments such as “small mother with big kid” and “fast design with fast yielding.” Relevant enterprises were advised to make prudent suggestions. Outward investment management mechanism is an important component of China’s open economic system. We will combine medium and long-term system construction with short-term mechanism, promote outward investment facilitation, prevent investment risk, regulate and perfect market order, enhance sound and order development of outward investment and maintain balance of international payment.

Source: http://english.mofcom.gov.cn/article/newsrelease/significantnews/201612/20161202222471.shtml

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