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State Council Issues Guidelines on Overseas Investments

On August 4, the State Council published a guideline on its website about overseas investments. The Commerce Department of the National Development and Reform Commission, the Bank of China, and the Ministry of Foreign Affairs developed the guideline. The guideline encourages investments that will promote international cooperation, improve research and manufacturing capabilities, compensate for the domestic energy shortage, and improve quality.

The guideline listed investment fields that the State supports: projects that promote the “one belt one road” and infrastructure construction in the region; the export of domestic high quality equipment and technology; the enhancement of cooperation with foreign high tech companies and those with advanced manufacturing technology; the setting up of foreign research centers; natural gas and resources exploration and the development, after careful evaluation, of economic benefits; advances in cooperation in agriculture and the launch of projects that have mutual benefits; and supporting qualified financial agencies to set up branch offices overseas.

The article also listed the areas that are limited in foreign investment: countries with which China does not have foreign diplomatic relations; regions involved in wars; real estate, hotels, movie theaters, or entertainment; sports clubs; investment funds that don’t have a specific project; and technology, environmental standards, energy indexes and safety regulations that do not meet the requirements of the investing country.

The areas that are prohibited in regards to foreign investment include military technology and products that are not approved by the State; technology, skilled products or those that are banned from being exported; gambling and prostitution; and investments banned in accordance with international standards or which endanger the nation’s security interests.

Source:, August 18, 2017