In a clear sign the world's second largest economy is opening further to foreign competition, the Chinese government is reviewing to suspend some of its laws that govern foreign investments in the country. The move is being headed by the Chinese State Council and the body would be seeking advice from senior members of the National People's Congress regarding the power to suspend both laws and regulations which cover foreign owned firms and joint ventures operating in the country's free trade zones.
The move seeks to further help in the acceleration of the government's role in the transformation and innovation in opening the country's economy to foreign investors. While it set no timetable and provide no details, the issued statement is a clear sign of reform to adjust the economy since there has been a slowdown in the influx of foreign direct investments into the country. In the first quarter of 2013, the decline is being reversed largely due to investor confidence in the Chinese economy.
In total for the first quarter of 2013, China had received USD38.3 billion, which is a 1.2% increase compared to the same quarter in 2012.
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