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New Guideline on Overseas Investment

Updated:2018-2-28 17:50:56    Source:www.tannet-group.comViews:239

The State Council has released a guideline to promote healthy growth of overseas investment and prevent risks. The guideline intends to drive the output of China’s products, technology and services, and deepen cooperation with countries involved in the Belt and Road Initiative. According to the document, China will support eligible domestic enterprises to make overseas investment and join in the construction of projects in the Belt and Road Initiative.

These enterprises should take the lead to export China's superior technology and equipment, upgrade the nation’s research and manufacturing ability, and make up the shortage of energy and resources through prudent cooperation in oil, gas and other resources. Overseas investments against the peaceful development, win-win cooperation, and China’s macro control policies will be restricted.

Those on the restriction list include real estate, hotels, entertainment, sport clubs, outdated industries and projects in countries with no diplomatic relations with China, chaotic regions and nations that should be limited by bilateral and multilateral treaties concluded by China.

In addition, the guideline also prohibits domestic enterprises being involved in overseas investment that may jeopardize China’s national interests and security, including output of unauthorized core military technology and products, gambling, pornography and other prohibited technology and products. (Source: State Council website)

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