Two moves recently by the Chinese government appear — at first glance — to be sending mixed messages about whether the country is opening up or clamping down on investment flows.
For foreign direct investments into the country, the authorities announced measures aimed at attracting greater flows by making it easier to invest in more sectors, loosening rules around the repatriation of profits and extending tax breaks to foreign investors in preferred areas of the economy.
But this is in sharp contrast to its more stringent views about overseas direct investment with the introduction of three new classifications for Chinese overseas investments: banned, restricted and encouraged. This means that outbound investment into the gambling and so-called adult industries will be banned, property and entertainment will be restricted and investments related to the Belt and Road Initiative and industrial upgrades will be encouraged.