China’s commerce ministry published a set of new rules regarding foreign investment on Monday which would confer greater oversight and scrutiny power to state regulators, in a move that mirrors recent decisions taken by some Western governments to limit the influence of Chinese capital.
The increased scrutiny would be carried out within the framework of the national security review process, focusing on foreign firms seeking “strategic” stakes in Chinese companies, the ministry’s release read.
As the Financial Times notes, however, some of the amendments outlined may help to increase foreign investment into China, such as a reduction in the total assets requirement of a prospective investor from $100 million to $50 million. The lock-up period for purchased shares will also be cut from three years to one.
The rules will be open for public comment until the 29th of August.
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