Chinese Government Plans to Cancel Restrictions on Foreign Investment in NEV Battery Industry

Yicai

2016-12-07

(Yicai Global) Dec. 7 -- China plans to cancel previous restrictions on foreign capital investments in various industries including transportation, manufacturing and mining, a draft document by the country’s top economic planner and price setter and commerce ministry says.

A Catalogue of Industries for Guiding Foreign Investment, jointly issued by the National Development and Reform Commission and the Ministry of Commerce, is less restrictive than last year’s version.

The amount of market sectors with limited access to foreign capital has been reduced to 62 from 93 in the 2015 draft. It has also been amended to include new fields, such as new-energy vehicle batteries and mined lithium ore.

Key sectors now open to foreign capital this year include highway passenger transportation, ocean shipping and credit information and rating services.

Manufacturing fields that have had restrictions lifted include rail transit equipment, automotive electronics, batteries for new-energy vehicles, motorbikes, edible fats, deep-processed maize, and fuel ethanol.

Mining fields have been similarly opened to include unconventional oil and gas, precious metals and lithium minerals.