Li Keqiang Says Foreign Profits Can Leave Anytime
Rebutting the April news of multinationals being asked to stop capital outflows, LI Keqiang said companies are free to take profits out of China. Though perhaps the key word in that sentence is profits.
iFeng: 李克强保证外企利润自由进出 一条不成文规定早已松动
Speaking at the World Economic Forum’s 2017 New Champions’ Annual Meeting (also known as “Summer Davos”), Chinese Premier Li Keqiang said: “We encourage foreign-funded enterprises to stay in China to invest in China, Of the profits in China to reinvest, will create more lucrative profits, of course, I also assure you that all foreign – funded enterprises as long as the profits made in China, you can freely in accordance with your wishes free access, there will be no restrictions.
Turning to Chinese firms, the article says capital controls are easing:
The lawyer told the first financial reporter, starting from April last year, every month have a certain amount of foreign exchange restrictions, this is an unwritten rule.
And now, they told the first financial reporter, this situation has begun to improve.
Zhan Xiaoning, director of the United Nations Development Program (UNCTAD), told the first financial reporter that China’s policy environment for foreign investment is now in an important transitional period. One is from the traditional foreign management system to the new negative list based on the open foreign investment management system transition; the second is from preferential policies to investment facilitation-oriented transition. The overall direction of China’s investment environment is to be further liberalized and facilitated.
He said that the “foreign investment industry guidance catalog” in the ban and restrictions on the continuous decline in industry, the service sector and the original restrictions on foreign investment in some manufacturing industries to increase the intensity of foreign investment. At the same time, the investment environment is optimized and facilitated. The establishment of foreign-funded enterprises outside the negative list from the approval system to the filing system, foreign-funded enterprises unified registration of capital system and the promotion of fair competition within the domestic and foreign enterprises, have further improved the foreign environment. Which are conducive to the growth of foreign capital inflows.
Facing the future, Zhan Xiaoning told the first financial journalists that the rapid growth of China’s foreign investment reflects the objective needs of Chinese enterprises to become international and participate in international competition. With the “one way” and the international production capacity to promote cooperation, China’s foreign investment is expected to remain at a high level.
And back to Li:
Li Keqiang said that these years, in the face of economic downward pressure, we did not take the “flood irrigation” type of strong stimulus, nor follow the excessive dependence on investment, consumption of resources, the traditional way of development, but through reform and innovation, Economic growth from the past too much rely on investment, export-led, to rely more on consumer-driven, service industry and domestic demand support. Last year, the contribution of consumption to economic growth rose to 64.6%, becoming the main force of economic growth; the proportion of added value of services increased to 51.6%, accounting for half of the country; the difference between current account and gross domestic product fell to 1.8 %, Domestic demand has become a ringing pillar.
Behind the above changes, highlighting China’s economic structure and quality of the change and enhance the economic growth has also maintained a stronger stability and sustainability.
Li Keqiang said that China will continue to maintain a healthy monetary policy in the future, and to promote production and other structural reforms.