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Beijing tightens investment rules

The timing has caused raised eyebrows: Practically in parallel with the conclusion of the investment agreement with the EU (CAI), China has tightened the rules for investments in its own country. In the new version, which has been in force since Jan. 18, the government in Beijing reserves the right to require approval for company takeovers in almost all sectors. Especially towards the EU, this course seems to contradict the spirit of the investment protection agreement. “The European business community is concerned about the broad scope of the new rules,” says Joerg Wuttke, President of the EU Chamber of Commerce in Beijing.

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