China Introduces Sweeping FDI Reforms

[TaiShang]

However, several new constraints have been added to the list. One that stands out is a new restriction on the manufacture of motor vehicles. In any JV producing vehicles, the Chinese party must now own over 50 percent of shares. Furthermore, such companies may only engage in up to two of the following three sectors: passenger vehicles, work-related commercial use vehicles (such as trucks or vehicles used in construction) and motorcycles. The latter restriction shall not apply where the third category is added via a merger or acquisition undertaken by the Chinese party.

Limitations shall also be extended to health care and education. Hospitals must now have a Chinese party as the majority shareholder. The same applies to pre-school and tertiary education.

The 2014 Guidelines also introduce several new prohibitions on foreign investment. These extend to the production of genetically modified plant seeds, processing of petroleum and coking, processing and production of nuclear fuel, sale of tobacco, Chinese legal consulting (restraints on non-Chinese legal consulting, however, have been completely lifted) and the operation of antique stores and auction houses selling Chinese cultural relics.

Also notice the new restrictions on automobile JVs, healthcare and pre-school & tertiary education.

Notice new restrictions on food and seed.

These are all carefully-planned, strategic steps.

This means, even with those proposed opening-ups, they are not inscribed on marble; they are just policies that may be revised or scrapped when/if the situation requires so.

I, for once, anticipate more restrictions on foreign investment in automobile sector as China's manufacturers catch up with the rest of the (developed) world and foreign expertise and technology no longer needed.

China will take decisions pragmatically, and, foreigners' interests come as its last concern.

 

[bolo]

If you gave up your sovereignty so easily to America, then why should we take your advice?

And it's the opposite way around. Chinese companies are buying up everything worldwide, Lenovo is already the number 1 PC maker in the world, and they are in discussions to buy up the Canadian Blackberry and half of America's HP computers. The latter of which will give them around 40% of the global market share.

I'm not giving advice. Our government allowed too many competition and killed most of our industries. They have not allowed foreign competition in telecom and our telecoms are flourishing.
I don't live in China but when things go bad in your country, your people flee to my country like cockroaches. I just don't want too many immigrants coming in because they kill our high salary in the business sectors.

 

[Chinese-Dragon]

I don't live in China but when things go bad in your country, your people flee to my country like cockroaches. I just don't want too many immigrants coming in because they kill our high salary in the business sectors.

So your anti-China colors come out again.

An anti-China foreigner complaining about Chinese government decisions, that just means we are on the right track.

 

[bolo]

So your anti-China colors come out again.

An anti-China foreigner complaining about Chinese government decisions, that just means we are on the right track.

Lol, there you go again. Because I'm against these policies, that make me anti Chinese?

 

[TaiShang]

Lol, there you go again. Because I'm against these policies, that make me anti Chinese?

This makes you anti-Chinese.

your people flee to my country like cockroaches

 

[Chinese-Dragon]

Lol, there you go again. Because I'm against these policies, that make me anti Chinese?

No, it's because you ARE anti-Chinese.

Just read your above post, you are pretending to care about China's economy, only because you don't want Chinese people "fleeing to your country like cockroaches".

See, when anti-China foreigners oppose every policy of the CPC, they always have an ulterior motive, which is fully expected. And this has been your pattern all along.

@TaiShang Thanks buddy.

 

[bolo]

No, it's because you ARE anti-Chinese.

Just read your above post, you are pretending to care about China's economy, only because you don't want Chinese people "fleeing to your country like cockroaches".

See, when anti-China foreigners oppose every policy of the CPC, they always have an ulterior motive, which is fully expected.

You can think what you like but I don't automatically agree with my government's policies. Just wait and see who is right.

 

[bolo]

This makes you anti-Chinese.

Do you know how many Chinese live in canada? Do you know how many Chinese come to Canada in the 70-90s? In 2012 Canada had 250000 immigrants with majority hindus and Chinese. Chins's economy is strong but still many came over. How many would flee should China's economy slow down?

 

[Chinese-Dragon]

You can think what you like but I don't automatically agree with my government's policies. Just wait and see who is right.

Why wait? If you anti-China foreigners think it is such a bad decision, then put your money where your mouth is, and bet against China in the stock markets.

But you never do.

The reason you anti-China foreigners think this is a bad decision, is because it will actually make China's economy stronger. That's why you'll never put your money where your mouth is.

 

[TaiShang]

You can think what you like but I don't automatically agree with my government's policies. Just wait and see who is right.

No one asks you to agree with your government's policy automatically.

Clearly, you do not agree with your government to let Chinese to invade your country like cockroaches.

That's very noble of you.

 

[bolo]

Why wait? If you anti-China foreigners think it is such a bad decision, then put your money where your mouth is, and bet against China in the stock markets.

But you never do.

The reason you anti-China foreigners think this is a bad decision, is because it will actually make China's economy stronger. That's why you'll never put your money where your mouth is.

. The stock market is not an indicator of your economy. Stock market is not an indicator of the state of your economy, financial industries do not add real value to an economy. I'm not going further with stock market. But if you want to debate it, start a new thread.

 

[Chinese-Dragon]

. The stock market is not an indicator of your economy. Stock market is not an indicator of the state of your economy, financial industries do not add real value to an economy. I'm not going further with stock market. But if you want to debate it, start a new thread.

If it is such a bad decision as you claim, the effects will eventually be felt in the stock markets, especially from the share prices of those large Chinese companies that you feel would be defeated by foreign competition.

So go ahead, put your money where your mouth is.

But you obviously don't believe they will be weakened, you're just plain lying, due to your anti-China stance.

 

[terranMarine]

Chinese people contribute a lot in Canada and US , what's the problem?

 

[bolo]

If it is such a bad decision as you claim, the effects will eventually be felt in the stock markets, especially from the share prices of those large Chinese companies that you feel would be defeated by foreign competition.

So go ahead, put your money where your mouth is.

But you obviously don't believe they will be weakened, you're just plain lying, due to your anti-China stance.

Believe what you want. But hey at least you have Nihonjin2050 giving you a like.

 

[Chinese-Dragon]

Believe what you want. But hey at least you have Nihonjin2050 giving you a like.

I also get likes from my fellow Chinese citizens like TaiShang and terranmarine. Also from intelligent foreigners. All of these are worth much more than a like from an anti-Chinese foreigner like you.

Though at least "some" foreigners have the guts to put their money where their mouth is:

Meet the man who is betting against China - Telegraph

Article is from 2013 by the way. Needless to say, his prediction didn't come true.

As the article mentions, there are countless ways to profit from a Chinese downturn, such as shorting the shares (or other securities) of large Chinese companies that you think will be negatively impacted by this decision.