According to the National Development and Reform Commission, Regulatory authorities will continue to pay close attention to overseas investment in key industries such as property, hotels, entertainment, cinemas and sports clubs.
The announcement narrows the number of areas facing such scrutiny — it removed areas including potential investment risks posed by "small parent companies with large subsidiaries and by new enterprises established in a short period of time rushing to go global."
China's nonfinancial outbound investment plunged by 45.8 percent year-on-year in the first half to $48.19 billion, according to the Ministry of Commerce.
During that period, China's real estate investment in foreign countries fell by 82.1 percent year-on-year, and the outbound investment in culture, sports and entertainment decreased by 82.5 percent year-on-year, according to the Ministry of Commerce.
Bai Ming, deputy director of the research institute under the Ministry of Commerce, said it makes sense for the government to keep an eye on certain types of outbound investment projects.
He said doing so is important because many domestic companies lack enough knowledge, such as political risks and the business environment in foreign countries.
"In the long run, the government will give more freedom to companies seeking to develop business in foreign countries," he said.
Bi Jiyao, deputy director of the Academy of Macroeconomic Research with the NDRC, said the government should continue the opening-up process and promote international capacity collaboration.
In the meantime, China should also increase the resilience of the domestic economy through supply-side re¬forms, he said.
China has made much progress while implementing key tasks involved in supply-side reform, according to the reform commission. For instance, China had achieved 74 percent of the annual target for coal capacity cuts by the end of June, with 111 million metric tons of capacity forced out of the market, according to the NDRC. (Source: China Daily)
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