Plan to cut red tape will help boost investment

A key outline document put together by commerce ministers will increase investment and stimulate growth in BRICS countries, a senior Chinese trade official revealed.

Eliminating red tape and streamlining regulations for companies should help open up markets and boost the investment environment for the bloc’s members — Brazil, Russia, India, China and South Africa, he said.

“Strengthening investment among BRICS countries will help explore each nation’s potential and will raise cooperation to a new level,” said Hu Yingzhi, deputy negotiation commissioner at the Ministry of Commerce.

Commerce ministers agreed on an outline document in Shanghai last month ahead of the BRICS Summit in Xiamen, the resort city of south China’s Fujian province.

A key element of the blueprint appears to be cutting red tape by streamlining regulations, which will stimulate cross-border company investment.

The outline document, Hu pointed out, reflected the common desire of BRICS countries to increase investment and boost economic growth, and was a major multilateral initiative.

It follows on, he said, from the global investment guidelines rolled out by G20 Summit leaders in Hangzhou, Zhejiang province, last year.

“It will be an important reference for global investment and will allow BRICS countries to contribute their wisdom and strength in establishing future global investment rules and governance,” Hu added.

The blueprint has widespread approval.

Mukhisa Kituyi, secretarygeneral of the United Nations Conference on Trade and Development, felt the outline document will gained help increase investment policy coordination among BRICS countries.

This will “push the transition of the growth model of emerging countries and their sustainable development”, Kituyi said.

Marcelo Maia, secretary of commerce and services at Brazil’s Ministry of Development, Industry and Foreign Trade, pointed out that boosting investment among BRICS countries would be an “effective weapon” to fight against trade protectionism.

Rob Davies, the South African minister of trade and industry said the investment outline document will help raise government efficiency and bring more investment opportunities for BRICS countries.

Strengthening investment among BRICS countries will help explore each nation’s potential and will raise cooperation to a new level.”

Hu Yingzhi,

deputy negotiation commissioner at the Ministry of Commerce

ZHANG LINGYAN / XINHUA Workers of Fuyao Group’s automobile glass plant in Kaluga, Russia, inspect a windscreen before dispatch. The Chinese company set up its first overseas plant in Russia in 2011 with a 1.33 billion yuan ($200 million) investment.