China to cut foreign investment red tape

China vowed to cut red tape and ease rules for foreign investors in a bid to boost the economy and counter a decline in private investment. At an executive meeting of the State Council, China’s cabinet, over the weekend, Beijing said it would encourage investment in the medical-care, education, sports and culture sectors and grant provincial governments more authority to approve projects not explicitly forbidden, The Wall Street Journal reports. These include projects related to container terminals, vehicle engines, urban transportation and inland waterways, it added. Multinational companies said they welcomed the policy as a first step toward more open markets, although they said too many sectors of China’s economy remain off limits to foreign investors. The real test, they added, will be in how the policy is carried out.