China issues rules for foreign investments by private firms

The government has issued rules for overseas investments by state firms and other guidelines to better control outbound capital flows

China’s powerful state planner on Monday issued new rules for overseas investment by private companies, aiming to stamp out instances of firms violating policies, engaging in unfair competition and poor safety and quality management.

As Chinese companies take an increasingly visible role in the global economy, the rules, issued jointly by the National Development and Reform Commission, the central bank and other government bodies, look to regulate their overseas activities.

Beijing has been stepping up scrutiny of outbound investment after a surge in international deals last year fuelled concerns that some deals were being used to disguise capital flight as the yuan