December 18, 2017 / 3:50 AM / a year ago

China issues guidelines for overseas investment by private firms

A China yuan note is seen in this illustration photo May 31, 2017. REUTERS/Thomas White/Illustration

BEIJING (Reuters) - China’s state planner on Monday said it had issued new guidelines for overseas investment by private companies, aiming to resolve some cases of firms violating policies, engaging in unfair competition and poor safety and quality management.

Private companies should improve risk controls, set up contingency plans, and improve safety measures in overseas investment, National Development and Reform Commission spokeswoman Meng Wei told a regular news conference.

Private companies should comply with domestic and overseas procedures and engage in fair competition with regard to overseas investment, Meng said, citing the new guidelines.

Beijing previously issued similar rules for overseas investments by state firms after surging foreign investment by Chinese companies raised worries of capital outflows and “blind” overseas expansion.

Companies should also be mindful of environmental protection and develop comprehensive strategies and financial management for overseas investment, Meng said.

Reporting by Beijing Monitoring Desk; Editing by Clarence Fernandez

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