China unveils plan to further open economy to foreign investments

Move comes as Xi Jinping seeks to project China as a leader in combating rising global protectionism

China’s State Council, the country’s Cabinet, issued on Tuesday new measures to further open the world’s second-largest economy to foreign investment, including easing restrictions on investment in banks and other financial institutions.

The move comes as President Xi Jinping seeks to project China as a leader in combating increasing global protectionism.

Xi defended globalisation in a speech at the World Economic Forum in Davos on Tuesday amid mounting public hostility in the West. China itself, however, has been the target of complaints from foreign business groups who have criticised its slow pace of market reforms and say its national security regulations and industrial policies are at odds with its reform goals. The Cabinet said in a statement posted on its website that China would lower restrictions on foreign investment in banking, securities, investment management, futures, insurance, credit ratings and accounting sectors.

No further details were provided, nor a timetable for their implementation. The country’s state planner had indicated at the end of last year that China would take measures to relax foreign investment in certain sectors.

Bloomberg