Negative list for investment has plenty of positives

CHINA has finished revising its list of areas that are not available for domestic and foreign investment after regional trials, the National Development and Reform Commission said yesterday.

The new version will take effect after approval by the Communist Party of China Central Committee and the State Council, NDRC spokeswoman Meng Wei said.

China has decided to take the “negative list” approach, which will open all sectors except a proscribed few to investors before the end of this year to streamline government administration and give more freedom to the market.

The NDRC and the Ministry of Commerce will work to facilitate the application of the scheme for market entities and improve its transparency, Meng said.

They will also further amend the list to adapt it to China’s reform progress, economic restructuring and legal changes, Meng added.

The nation will also step up efforts to facilitate bond issuance for private companies.

To ease private firms’ financing difficulties, the country will make it easier for them to raise funds via bond issuance, Meng added.

This is especially for enterprises with good credit and stable performance, and those who support industrial upgrading and regional development.

Meng said the country will also encourage eligible firms to issue bonds to support startups.

The nation has vowed to provide necessary financial support for private companies that default on corporate bonds because of tight cash flows but were still industry leaders, large employers or in emerging industries.

Meanwhile, she denied there had been any proposal to reduce the car purchase tax by half.

“We have not studied or made the proposal of reducing the auto purchase tax to 5 percent,” said Meng.

While softening car sales brought auto firms under pressure, it can also force companies to increase competitiveness, eliminate backward production capacity and drive industrial upgrading, she said.

“There is still broad room for development in our auto industry,” Meng added.