BEIJING: China's Ministry of Foreign Trade and Economic Cooperation has issued new rules to loosen restrictions on foreign investment in the country's foreign trade companies and to allow more foreign investors to set up foreign trade joint ventures in China, the International Business daily said.
The rules stipulate that foreign investors recording more than US$30mil of trade with China for three consecutive years may apply to set up foreign trade joint ventures anywhere in China, while those who set up such joint ventures registered in China's lesser developed central and western regions need to have notched up only US$20mil in trade for three consecutive years.
Foreign capital in these joint ventures is limited to between 25% and 49%, while the Chinese stake should be no less than 51%.
Under the rules, Chinese investors in foreign trade joint ventures may conduct foreign trade, with the average annual foreign trade exceeding US$30mil for three consecutive years, and with the same concessions as foreign investors for setting up business in the central and western regions.
The rules also stipulate that foreign investors can set up foreign trade joint ventures anywhere in China, and not just in Shanghai's Pudong new area and Shenzhen, as was previously the case. – AFX