A 10-year ban on foreign control of domestic steel companies in China is to be lifted from April 10, claims a report in the South China Morning Post.
Falling property prices, industrial overcapacity and and economic growth target of just 7% is behind the change of policy but may be too late if analyst Hu Yanping is to be believed. He said that China’s steel industry has passed its ‘golden years’ and that foreign investors simply wouldn’t be interested.
Now the number of industries subject to restrictions on foreign investment is down to 35 from 79.
According to the South China Morning Post, the loosening of restrictions is designed to increase the competitiveness of the Chinese economy.
Source: South China Morning Post.