BEIJING (Sputnik) — Chinese authorities will soon publish a new "code of conduct" to help the country's businessmen wishing to invest overseas better assess risks, the China Daily news outlet reported on Friday, citing a government source.
The "code," which is part of China's larger program to improve regulation on outbound investment, will help businesses identify risks they may encounter in foreign countries.
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On Tuesday, the National Development and Reform Commission released a report, which suggested that China's foreign investments had been growing at a blistering pace in the last few years, but some of the investments should have been assessed more critically.
According to the report, China will boost cooperation with other countries on legal risks to provide better counsel to its businesses.
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Beijing has recently unveiled new investment rules, aimed at greater openness and transparency, decentralization and encouraging small private investment, in order to boost its international competitiveness and increase the value of its asset management market by 2030.
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This position was voiced by Chinese Deputy Finance Minister Zhu Guangyao in early November, who claimed that the government would lift limits on foreign ownership stakes in securities, fund managers and futures companies from the current 49 percent to 51 percent and end restrictions after three years.
Western analysts have praised the initiative which came a day after US President Donald Trump's visit to China. During the visit, Trump called on his Chinese counterpart Xi Jinping to allow American companies greater access to the Chinese market.
These measures seem to be one of the biggest concessions by China since the country entered the World Trade Organization (WTO) in 2001. The economic liberalization required by WTO rules had weakened the positions of its domestic companies. In response, the government has used different restrictive measures against foreign investment and capped the participation of foreign capital as a protective measure.
