China’s rising debt levels concern investors and banking authorities, but regulators are becoming increasingly active in passing policies aimed at controlling debt and managing risks to the economy. While some analysts are cautious about China’s rising debt, others remain optimistic about the government’s ability to manage the issue.
On Friday, China’s State Council released a revised list of investment restrictions that may allow companies in a number of industries additional market access in the 11 designated free trade zones (FTZs) around the country. The revised negative list, which names sectors that retain foreign investment restriction, goes into effect on July 10, 2017.
Over the past year, China has implemented a variety of restrictions to stem capital flight in response to downward pressure on the renminbi (RMB).
During the eighth Strategic & Economic Dialogue which concluded early this week in Beijing — the final round for the Obama administration, China said it would offer a revised Bilateral Investment Treaty (BIT) negative list next week in Washington, DC, according to statements made by Vice Premier Wang Yang and Treasury Secretary Jacob Lew.
The PRC National People’s Congress concluded this month with the release of China’s 13th Five-Year Plan (FYP) on National Economic and Social Development. Outlining economic policies and targets to drive industry development in China through 2020, the plan focuses on maintaining economic growth and social stability while continuing reform efforts.