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China to Innovatively Reduce Investment Regulations

Posted November. 27, 2003 22:51,   


On November 27, the Financial Times (FT) reported that China is preparing for a new revolutionary measure on investment regulations which will allow companies, regardless of it being domestic or overseas, to invest their money without any permission from the government.

Chang Shao Ching, the deputy chairman of National Development and Revolution Committee (NDRC), in an interview with FT, said, “In cases of investment projects without any governmental funding, we will drive forward measures to allow these projects to proceed without any governmental inspection or approval. We will be able to apply this measure next year at the earliest.”

Currently, in China, foreign investment projects over $30 million have to receive permission from the central government before moving forward.

“When it comes to a project which is not the target of governmental regulation, it will be followed through with just a simple registration process. As for projects which fall under governmental regulations, formal procedures will be greatly reduced,” explained the deputy chairman Chang, adding, “We have assessed only the company’s manufacturing capacity, the type of facilities they use, and where they sell their goods when we evaluate the investment project inspections so far, but from now on, we will focus on external factors such as environmental influences, economic security problems, and others.”

At the 16th Communist Party’s General Meeting of the Central Committee held in October, “50 provisions,” including the above mentioned measures, were addressed along with other economic revolutionary plans.

Yoo-Sung Hwang yshwang@donga.com