China has announced the end of restrictions on foreign capital in areas such as health and manufacturing to combat the decline in foreign investment and breathe new life into the economy..

The list of sectors where China does not allow foreign investment has once again been shortened. This Sunday (08), Beijing announced the opening up of two areas: in the manufacturing industry there will no longer be any restrictions on foreign investment and in the health sector hospitals wholly owned by foreign companies will be allowed in nine areas of the country.

Thus, according to a publication in the Portuguese newspaper "Business", the list of restricted sectors is reduced from 31 to 29. The changes come into effect on November 1st and reflect China's latest effort to attract investment and boost the economy.

The new "negative list for access to foreign investment" - as Xinhua describes it - was announced by the Chinese Ministry of Commerce and the National Development and Reform Commission (NDRC), which says it is an "important step towards building a new system for a higher-level open economy".

In this way, Beijing is removing the last remaining restrictions on the manufacturing industry. For example, majority Chinese control of printing factories is no longer mandatory and foreign investment is now allowed in the production of Chinese herbal medicines.

In the pipeline is the opening up of the services sector, with the authorities committing to a review of current policies.

The big news is really in healthcare, with nine areas of the country allowed to host wholly foreign-owned hospitals: Beijing, Tianjin, Shanghai, Nanjing, Suzhou, Fuzhou, Guangzhou, Shenzhen and Hainan. However, traditional Chinese medicine hospitals still cannot be bought.

Foreign capital will also be allowed in the development and application of medical technology, including stem cells and genetic diagnostics and treatments for the provinces of Beijing, Shanghai, Guangdong and Hainan.

Foreign direct investment in China has been falling. In the first five months of the year, the country attracted 56.8 billion dollars, 28.2% less than in the same period last year.

(Photo DR)