BEIJING – China has restricted the investments that its companies can make overseas in several sectors, including property, hotels and equity investment funds, while easing restrictions in other sectors, including electricity and telecoms, the official newspaper People’s Daily reported Monday.
The National Development and Reform Commission has updated its list of “sensitive sectors,” in which investment in other countries will be restricted.
The new list will be effective from March 1.
Under the new regulation, Chinese companies wanting to invest overseas in projects concerning telecoms, large-scale land development, and electric mains and power grids will only need to complete record filings with the authorities like other common sectors without the need for special official approval.
These sectors have been removed from the “sensitive sectors” list for the first time since 2014, when they were included on the list.
Among the sectors added to the list by the Commission are the arms industry, investment in property, hotels, cinemas, entertainment, sports clubs, and equity investment funds.
Cross-border water resource development and news media have been retained on the list.
This decision is part of the government’s desire to reduce “irrational investment” overseas.
China’s non-financial outbound direct investment in 2017 fell 29.4 percent year-on-year to $120.08 billion.