Hindustan Times ST (Jaipur)

China to reduce curbs on foreign investment

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SHANGHAI/BEIJING: China will reduce restrictio­ns on foreign investment and address difficulti­es facing foreign companies investing in the country, the commerce minister said, according to a transcript of an interview he gave to state media.

Commerce minister Zhong Shan said China would allow full foreign ownership of companies in more areas of the economy and would reduce the number of industries in which foreign investment was restricted or barred, according to the transcript posted on the ministry of commerce’s website on Sunday.

The comments appeared to be largely reiteratio­ns of past pledges by Chinese officials for further market opening.

Foreign direct investment (FDI) into China rose by 3% year-on-year to $135 billion in 2018, Zhong said.

That would mark a slowdown from growth rates of 7.9% in 2017 and 4.1% in 2016.

But Zhong said China had maintained stable FDI growth “against a gloomy global climate,” noting that total FDI around the world had slumped by 41% in the first half of last year. China has been pushing to broaden opportunit­ies for private firms and foreign investors to stimulate an economy that is slowing on the back of weakening domestic demand and a trade war with the United States.

Zhong said “properly handling” trade frictions with the United States was a major task for the ministry in 2019.

The ministry would “conscienti­ously implement” the consensus to work toward a resolution of the trade row reached by Chinese President Xi Jinping and US counterpar­t Donald Trump in Argentina late last year, he added.

 ?? REUTERS/FILE ?? Chinese commerce minister Zhong Shan.
REUTERS/FILE Chinese commerce minister Zhong Shan.

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