Sensitive countries, industries remain on new ODI negative list  

(ECNS) -- The State Council recently released revised guidelines for investment, including outbound direct investment (ODI), which cut red tape for 99 percent of ODI projects and grant firms more freedom.

Under the new rules, companies would only need to register their overseas investment projects with the Minister of Commerce (MOC), not gain approval, with a few exceptions involving investment in sensitive countries or regions as well as sensitive industries.

Such sensitive countries or regions include those that haven't established diplomatic ties with China, those under United Nations sanctions, and those undergoing wars or turmoil.

Sensitive industries include telecommunications, cross-border exploitation of water resources, mass land development, grid construction and news media.

Previously, any overseas investment of more than $100 million required approval from the central government. ODI in energy and mining, or projects under $100 million had to be approved by provincial governments.

Gu Dawei, an official with the Development and Reform Committee, said the new guidelines are necessary to make investment more market-oriented and open.

According to Zhang Xiangchen, Assistant Minister of Commerce, China's ODI this year would likely reach 120 billion yuan ($20 billion). The annual ODI growth rate is expected to surpass 10 percent, thanks in no small part to the favorable policy, he added.