China encourages investment in agriculture

China State Council encourages international investment in agriculture

China’s State Council has released a range of new international investment guidelines designed to promote healthy growth of outbound investment by Chinese companies whilst curbing ‘irrational’ spending.

The guideline intends to drive the output of China’s products, technology and services, and deepen cooperation with countries involved in the Belt and Road Initiative.

Although Australia is not formally involved in China’s Belt and Road Initiative, our 2015 FTA with China continues to foster agribusiness investment and trade between two countries.

With China State Council’s new guidelines placing ‘agriculture’ on the ‘encouraged list’ and conversely placing investments in development ‘real estate’ on the ‘restricted list’, I believe we’ll see Chinese POE’s following the Council’s lead by redirecting funds toward Australia’s agricultural sector.

An abbreviated overview of China State Council’s new guidelines* appended below;

‘Encouraged’ Investment List

  • Infrastructure construction in favour of ‘Belt and Road’ Initiative
  • Advanced technology and manufacturing
  • Exploration and development of energy resources
  • Agriculture
  • Service industry investment (ie health care)

‘Restricted’ Investment List

  • Investment in sensitive countries (ie war zones)
  • Real estate investment (ie speculative investments, hotels, sporting clubs)
  • Investments that do not conform with China’s environmental protection and energy consumption standards

‘Banned’ Investment List

  • Gaming investments (ie casinos)
  • Unauthorised military investments
  • Investment in prohibited technology, processes and products
  • Investments that may jeopardise national security

For further information on Chinese international investment policy visit the State Council People’s Republic of China website.