China is lifting caps on foreign capital in some sectors.
BEIJING: China's central government, in a move to reduce restrictions on foreign investment, has issued new guidelines for encouraging foreign investments in strategic emerging industries.
The guidelines, jointly issued by the National Development and Reform Commission and the Ministry of Commerce, encourage more foreign investment into energy-saving and environmentally-friendly technologies, new-generation information technology, biotechnology, high-end equipment manufacturing, alternative energy, advanced materials and alternative-fuel cars.
The guidelines, effective January 30, 2012, will allow foreign investors to invest in more sectors and lift caps on the proportion of foreign capital in some sectors.
The government is also welcoming foreign invesments in high-end manufacturing, modern service industries and recycling industries.
However, the government will withdraw support for foreign capital in the automotive industry in order to protect the healthy development of the home industry.
Foreign investment in the sectors of polycrystalline silicon and coal chemical are not supported by the government because of industrial over-capacity and repeated construction, according to the guidelines.
In the first eleven months of the year, China attracted US$103.77 billion (RM326.87 billion) in foreign direct investments, up 13.15 per cent, from last year.