China Removes Some Obstacles From Investment Control

China said it has an option to impose less control on foreign investment by local companies. It is also going to simplify application approval procedures for it.

(PRWEB) October 16, 2004 -- China said it has an option to impose less control on foreign investment by local companies. It is also going to simplify application approval procedures for it.

This step aimed at adopting a policy of encouraging overseas investments, thus, better tap overseas markets and international expertise by helping them to acquire or develop operations abroad.
Beijing, thus, wants to support its market players to perform globally.

For instance, television and home electronics group TCL last year purchased the TV operation and brands of French company Thomson.

China also wants to help its state-controlled oil groups and other resource companies to secure foreign reserves. Metal group China Minmetals is now, for instance, in exclusive talks to acquire Noranda, the Canadian metals producer, for an estimated $5.5 billion.

Capital movements also see some more space for performing in future as China reduces its control to ease upward pressure on the Chinese currency.

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