China introduces restrictions on investments abroad

Almaty. August 21. Silkroadnews – China introduces restrictions on investments abroad, Asharq Al-Awsat reported.
“China has imposed new restrictions on Chinese companies’ overseas investments, preventing them from working in many sectors, such as sports clubs, hotels, cinemas, real estate and entertainment”, the report said.
At the same time, the newspaper reminds that Beijing for a long time motivated its companies for overseas acquisitions, but at the end of 2016 dramatically changed its policy and warned entrepreneurs from “irrational” acquisitions.
It is reported that the Chinese government announced that overseas investments inconsistent with China’s diplomacy in the field of peaceful development, as well as mutually beneficial cooperation and macroeconomic regulation, will be restricted to avoid risks.
“The Chinese government added that Chinese companies would not be able to make more investments in countries or regions experiencing wars or those with no diplomatic relations with the country. The directive also prohibits investments that could harm the interests and security of the country. It referred in particular to the production of “unauthorized” military equipment and technology, pornography and gambling”, the publication notes.
It is noted that only investments that support the real economy or advanced technologies are allowed. As a result, Chinese investment abroad decreased 46% in the first half of 2017 to $48 billion.
Reportedly, information about the restrictions came after the Chinese businessman Gao Zhisheng invested into the English football club Thothampton. According to the British press, the Gao family has acquired 80% of the shares for about £200 million (€220 million).
The newspaper also reminds, three years ago a large number of European clubs also attracted capital from China: in Spain – Atletico Madrid and Barcelona, in the UK – Aston Villa, West Bromwich and Manchester City, in France – Sochaux and Auxerre, in Italy – Inter Milan and AC Milan. Large Chinese groups in Europe and the US also purchased stakes in banks, hotels, film studios and cinemas.