(Yicai Global) Jan. 10 -- China will remove restrictions on the purchase and wholesale of rice, wheat and corn in the country's free trade zones, per a new policy the State Council released.

The State Council said yesterday on its website that it will stop implementing parts of a directory of industries for foreign investments amended last year.

The directory had listed purchase and wholesale of rice, wheat and corn as "industries in which foreign investments will face limitations."

China is removing restrictions to fulfill the promise it made during its admission to the World Trade Organization to liberalize its bulk agricultural product market, Shanghai JC Intelligence Chairman Li Qiang told Yicai Global. This is a good sign for European countries and the US, Li said.  

The government aims to foster a favorable international environment, Li said. The policy is expected to benefit foreign trade companies, which will be allowed to make deals and conduct futures hedging business in free trade zones, said Li.

Small and medium-sized domestic traders may be slightly affected, Li said, adding that most foreign merchants do not only trade in China and also make industrial investments.

China's agricultural product market will intensify international interactions, enhancing and facilitating Chinese exports, Li said.

The trend of opening up and balancing trade will not change, but the process will slow, Li said.

China has 11 free trade pilot zones to implement more open economic and trade policies. They are in major grain-producing provinces including Henan, Liaoning, Hubei and Sichuan.