MOFCOM Plans to Ease Conditions for Foreign Investors to Make Strategic Investment in China’s Listed Companies
ISSUING AUTHORITY:
Ministry of Commerce
DATE OF ISSUANCE:
June 30, 2021
EFFECTIVE DATE:
June 30, 2021
On June 30, 2021, the Ministry of Commerce released the Development Plan for Commerce in the 14th Five-year Plan Period (the “Plan”). The Plan put forward a series of important missions to be accomplished in the next five years covering nine areas, i.e. developing a strong domestic market, promoting innovative development of foreign trade, improving the quality of foreign investment, advancing high-quality development at free trade zones, enhancing the quality of outbound investment and economic cooperation, deepening trade and economic cooperation under the “Belt and Road Initiative”, optimizing the regional opening-up layout, actively participating in global economic governance, and improving the risk prevention and control system in the commercial field.
The Plan proposed to further relax conditions for foreign investors to make strategic investment in China’s listed companies. According to the Plan, foreign investors are encouraged to step up investment in high-end manufacturing, advanced technologies, transformation and upgrade of traditional manufacturing companies, modern service industries, as well as investment in the central and western regions. Foreign companies will also be supported to set up global and regional headquarters and research & development centers, and actively participate in the construction of new infrastructure projects.
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