MNI 5 THINGS: China NDRC To Cut O'seas Investment Restrictions

--Five highlights we picked up on the Tuesday's NDRC press conference

     BEIJING (MNI) - China's National Development and Reform Commission is

looking to reform the playing field for foreign investment into China. Here are

five highlights from the NDRC press conference held Tuesday to coincide with the

National People's Congress and Chinese People's Political Consultative

Conference. 

     1) The NDRC said Tuesday it will cut restrictions for foreign investment as

China furthers efforts to attract offshore investors. The economic planning

agency aims to apply nationwide the less-restrictive banned list used for

China's free-trade zones, which sets fewer impediments and has more preferential

policies for foreign companies, Ning Jizhe, deputy director of the NDRC said.

     2) In order to further reduce market-entry restrictions for foreign

companies, China will also increase the openness of both its manufacturing and

service sectors. Additionally, it will lower rules governing certain

share-ownership levels for foreign companies, whilst also cutting back on

regulations on foreign companies investing in certain areas, Ning said. The

central government will guide local government, especially those in China's

middle, western and north-eastern regions, to put in place preferential policies

allowing foreign investors to receive government subsidies and access to cheaper

land deals, Ning stressed.

     3) The NDRC officials also expressed confidence that China's domestic

consumption, investment and trade make China's 6.5% target for 2018 economic

achievable. He Lifeng, director of the NDRC, said investment is expected to

contribute around one third of economic growth, with private capital investment

also seen picking up. Consumption would be close to or even more than 60% of GDP

growth, He said, as China continues to develop emerging industries and the

service sector. Trade growth will remain stable, He said, projecting it will

contribute around 8% or 9% of GDP growth.

     4) While stressing the main problem for China's aim of high-quality

economic growth lies in the supply side, He said China will continue its

campaign to cut capacity and guide companies to boost production quality. Other

than reducing steel and coal capacity, along with reducing electricity output

generated by coal burning, all by specified amounts, the commission will switch

its focus to improving industry structure at a systemic level instead of simply

cutting capacity in terms of volume, Ning noted.

     5)The NDRC stressed Chinese cities' need to enhance their natural gas

storage capacity, which should be enough to supply natural gas to local citizens

for around ten days. The commission will also boost the ability to provide

natural gas to citizens in time, as it continues the campaign to replace coal

use with natural gas in order to tackle air pollution problems. Infrastructure

construction, including natural gas pipes, will be increased, the NDRC officials

said.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

--MNI Beijing Bureau; +86 (10) 8532-5998; email: iris.ouyang@marketnews.com

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

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