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China points nationwide safety guidelines on overseas funding By Reuters

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SHANGHAI (Reuters) – China printed guidelines on Saturday for reviewing overseas funding on nationwide safety grounds, probably broad measures that it insisted didn’t quantity to protectionism.

The overview system introduced by the Nationwide Improvement and Reform Fee (NDRC) covers overseas investments in navy sectors and the acquisition of controlling stakes in such sectors as vitality, pure sources, agriculture, web know-how and monetary companies.

“Solely by tightening the fence towards safety dangers can China lay the stable foundations for a brand new spherical of opening up that’s broader, wider and deeper,” the fee mentioned.

This was in step with worldwide apply and would assist steadiness the financial advantages of additional opening with the necessity to guarantee nationwide safety, the NDRC mentioned.

The announcement comes as U.S. President Donald Trump ratchets up tensions with China in his last weeks in workplace. Washington added dozens of Chinese language firms to a commerce blacklist on Friday.

Publishing the funding guidelines is “not protectionism or backtracking from opening-up insurance policies,” the NDRC mentioned, asserting that “opening up with out safety isn’t sustainable.”

Main economies like america, the European Union, Australia, Germany and Japan have established or improved their overview mechanisms on overseas funding lately, it mentioned.

The brand new system will set up a physique devoted to safety critiques, headed by the NDRC and the Ministry of Commerce. The principles, which take impact in 30 days, comply with a overseas funding legislation printed final yr aimed toward broadening market entry for abroad buyers.

Final yr’s overseas funding legislation made it clear China would arrange a overview mechanism for overseas funding, and overseas firms and commerce associations have been awaiting the brand new guidelines in order that they’ll make funding selections, the NDRC mentioned.

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