China cuts red tape for outbound investment firms, sets negative list  

(ECNS) -- China's Ministry of Commerce (MOC) has issued new rules relaxing bureaucratic procedures for domestic companies making overseas investments, with such regulations also featuring a negative list, the Economic Information Daily observed.

Fang Wei, deputy head of the Department of Outward Investment and Economic Cooperation at the MOC, said companies only need to register with the ministry, not gain approval, with a few exceptions.

Only investments in countries or regions and industries identified as "sensitive" will require the ministry's approval. Such sensitive countries or regions include those that have not established diplomatic ties with China and ones under United Nations sanctions.

Fang said the new rules for the first time feature a negative list, which prohibits overseas investment that violates the country's sovereignty, security, laws and public interests, as well as diplomatic relations between China and other states.

Besides, overseas investment by industries under China's export restriction policies or those projects violating international treaties or agreements that China has signed are also on the list, Fang added.

Lu Jinyong, head of the outbound direct investment research center at the University of International Business and Economics, lauded the list, "Similar negative lists are adopted widely by western countries."

Fang said the list will be revised and improved in future, possibly after negative list BIT negotiations between China and US.

Aimed at allowing more freedom for outbound investment, the new regulations will take effect on October 6.

China's outbound direct investment (ODI) reached a record high of $108 billion in 2013, making it the world's third largest investor for the second year.