Why this is important to Wisconsin businesses: New, more investment-friendly policies present opportunities for Wisconsin companies.
China will strive to attract foreign investment in 2017 with policies that promote foreign direct investment (FDI). Foreign companies will now be subject to the same registered capital system as domestic companies, and the minimum registered capital requirement has been eliminated. The Chinese government has released a revised draft of its Foreign Investment Industries Guidance. The revised document removes some restricted categories and allows investment in a wider range of industry sectors. Water conservation, energy, environmental protection and utilities via franchise agreements are now accessible for foreign investment.
As for outbound FDI, China will tighten the screening of overseas investment projects. Overseas payments over $5 million, including portfolio investment or mergers and acquisitions, must be reported to the State Administration of Foreign Exchange (SAFE) for approval. The threshold was $50 million before the new rules were carried out. All outbound investment projects will be carefully examined to see if they match with the business scope of the investor, in order to reduce concern about capital outflows, money laundering, speculative investment and acquisition risks.