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China says to let foreigners invest more in services
Reuters, 8th September 2009

XIAMEN, China (Reuters) - China will push ahead to open its services sector to foreigners and gradually reduce limits on the equity stakes they can take in their Chinese ventures, Commerce Minister Chen Deming said on Tuesday.

Foreign business groups say limits on access to industries ranging from logistics to insurance are among their top concerns about doing business in China.

Many are also frustrated about rules that cap the equity stakes they may hold in their joint ventures, which in most cases limit them to below a majority stake.

"We will actively and steadily push ahead with the opening of the services sector, and gradually reduce the equity stake restrictions on foreign investment," Chen told a forum in the coastal city of Xiamen.

Chen also reiterated that Beijing was planning to allow foreign firms to list on Chinese stock exchanges, but did not give details or a timeframe.

He said China would encourage foreign investment in clean energy and for foreign firms to invest more in the relatively underdeveloped central and western parts of the country.

The European Union Chamber of Commerce in China said in a statement that it welcomed Chen's remarks.

In its recent position paper on doing business in China the EU chamber called for a new round of opening up and reform, highlighting the liberalization of the services sector as a key step.

"The European Chamber believes that such measures are needed to create a more efficient, fair and customer-oriented market environment for all businesses and consumers in China. The development of the service sector will also lead to a more balanced sustainable economy," it said.

"The European Chamber is therefore encouraged by Minister Chen's comments, and hopes to see these translated into concrete and feasible measures with specific timelines in the near future."

Source: http://www.reuters.com/article/gc04/idUSTRE58729O20090908

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