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China to strengthen authentification checks on companies going abroad

时间:2017-01-04 06:54来源:未知 作者:voa365 点击:

Senior Chinese Commerce officials are warning of increased scrutiny this year of Chinese companies planning to invest abroad as part of the attempt to stop illicit capital outflows.


Zhou Liujun, director of the Commerce Ministry's Overseas Investment Department, says new regulations are being drafted which will have Chinese companies looking to invest abroad undergo stricter authentification checks.


"Our first move is to increase our authenticity checks. Companies which can prove their overseas investments are legitimate will be given help in making their investments abroad. The second step is to improve our services to help fend off risks."


The move comes amid concerns companies may try to skirt capital outflow restrictions through overseas investments which have little or no value to the company itself.


The concerns are being prompted by the continued decline in the value of the renminbi against the US dollar, which most observers expect is going to continue this year as the US Federal Reserve moves to increase interest rates.


There are concerns that by increasing the oversight of overseas investments, Chinese companies might become reluctant to make moves abroad.


Zhou Liujun says companies which are legitimately attempting to expand their reach on the international market need not worry.


"We will always support companies who want to compete on the global stage. We want to help give them the capability and competence they can gain by increasing their international cooperation while moving up the value chain. We want these companies to perform well."


Overseas investments by Chinese companies increased rapidly this past year.


Official data shows non-financial outbound direct investment increased by over 55-percent year on year through the first 11-months of last year, exceeding 160 billion U.S. dollars.


Huang Xueqi, former director of the Chinese Chamber of Commerce in the United States, says the increased scrutiny of Chinese investments should help bolster the overall reputation of Chinese companies abroad.


"At the moment, not only in developed countries but also in developing countries, Chines enterprises have increasingly shown their presence. And with the central government's 'belt and road' initiative, their investment are expanding and the quality is improving, which shows huge potential for growth in the future. "


In issuing its policy directives for 2017, the Chinese Commerce Ministry says it intends to help increase foreign trade, promote global investments and step-up risk prevention in key commercial areas.