News + Events
Foreign Investment Encouraged in Domestic Enterprises - 鼓励外资以并购方式参与国内企业兼并重组
February 1, 2010
Released and effective on December 31, 2009
China Securities Daily reported on December 31, 2009, that the State Council had issued an Opinion containing measures that would be made to better use foreign investments in 2010. These measures include:
- To expand the industries open to foreign investment, and to encourage foreign investors to invest in industries, such as high-end manufacturing, new and high technology, modern services, new energy, energy-saving and environmental protection. Moreover, land will be supplied to the foreign projects with efficient land use under the encouraged catalogue of the ”Guiding Catalogue of Foreign Investment Industries”.
- To encourage foreign investors to develop labor-intensive industries in the mid-and-western regions that comply with environmental protection requirements, the government will support them with more opening-up policies, technology and capital.
- To encourage foreign investors to participate in the restructuring and reorganization of domestic enterprises by means of M&A, and support the broadening of the re-financing channels and encourage the financial institutions to continue the credit loan to be made to the foreign investors.
- The government requires the competent authorities to minimize the approval procedures relevant to foreign investment and to increase the approval transparency.
- The government supports the growth of development zones and improves forex management for foreign invested enterprises and simplifies the process of settlement of foreign exchange on the capital account.