Foreign investment banned in key mineral industries
by (07/11/09 23:59)
The government will prohibit foreign investors from exploiting “important and non-renewable” mineral resources, and will restrict energy-consuming and highly-polluti projects, according to new guidelines released Wednesday.
The new guidelines, put into action against a backdrop of economic transformation from quantity to quality, will replace the 2004 guidelines and take effect from next month, spokesmen for the National Development and Reform Center (NDRC) and Ministry of Commerce announced.
Foreign companies will not be allowed to enter “strategic and sensitive” industries related to nationalconomic security, though the NDRC did not specify what the industries are or what the restrictions will be.
The government will also curb the expansion of export-oriented industries to reduce a ballooning trade surplus, which has stirred protectionist sentiments among major trade partners.
Foreign investors are invited to join efforts to promote economic recycling, clean production, utilization of renewable energy and ecological and environmental protection, the guidelines said.
The manufacturing sector is also open to foreign investment in high technology, equipment manufacturing and new materials industries, but foreign investment in traditional manufacturing industries in which China already has “mature technologies and relatively strong production capacity” is not encouragedThe government is showing particular interest in new high-tech industries, especially electronics, biology, petrochemicals and medicines, and wants to redirect foreign investment to these, Jin Bosheng, a research analyst with the Ministry of Commerce, said.