On Sunday China’s ‘state planer’, the National Development and Reform Commission (NDRC), issued a joint statement with the Ministry of Commerce (MOC).
In a nutshell, the bombshell announcement is of the complete removal of restrictions on foreign investment in the manufacturing sector.
This will happen on November 1, in the form of the release of the 2024 version of the negative list for foreign investment access:
- zero restrictions on the manufacturing sector
- the total number of items on the negative list, or restricted sectors for foreign investment, will be reduced from 31 items to 29
The previous version of the negative list came into effect way back on January 1, 2022.
At the margin, this is going to be a positive for the Chinese economy and yuan.
This article was written by Eamonn Sheridan at www.forexlive.com.
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