Abuse of security review to hurt foreign investment, govt says

The Ministry of Commerce said on Saturday it noticed some countries have tightened the security review of foreign investment in recent years, which may obstruct the investment activities of Chinese companies in the overseas markets.

"We are closely watching this issue and seeing how it develops," Qian Keming, vice-minister of commerce, told at a press conference from the sidelines of the two sessions. "We are firmly against protectionism in any form, and do not want to see the abuse of security review as a way to obstruct the normal investment activities."

"We are willing to work with relevant countries, creating an open and transparent business environment and making the world economy an open one," Qian added.

Chinese overseas investment has become a principal engine of global foreign direct investment growth, Qian said. In 2018, China's investment in the overseas markets hit around $130 billion, creating 17 million jobs and contributing $40 billion in tax revenues for host states.

Qian proposed to make a big push in three aspects, thus guiding enterprises to rationally invest in overseas markets.

First is to upgrade, renovate and build a number of overseas economic and trade cooperation zones, with a key focus on countries and regions alongside the Belt and Road Initiative.

Second is to offer intensive training for companies in terms of investment policies, operation compliance, corporate social responsibility and other aspects, to improve their international investment and operation capabilities.

Third is to prevent risks. The ministry will continue to offer investment guidance, which now covers nearly 200 countries, and provide risks analysis and warnings.