China’s State Council to promote foreign investment growth
On August 16, the State Council released a circular (Guo Fa  No. 39) that detailed measures to promote foreign investment growth as part of China’s opening-up strategy.
The circular entails 22 measures that could be divided into five categories, including reducing market entry restrictions for foreign investment, making supportive fiscal and taxation policies, improving the investment environment for national development zones, attracting foreign talent, and optimizing the business environment.
While concrete policy plans to help foreign investors have yet to be issued, foreign investors could take the circular as a positive sign of the government’s intent to further relax restrictions on foreign investment. This is particularly the case as specific ministries have been put in charge and implementation timelines have been outlined for each measure in the circular.
Ford Motor, Chinese automaker in talks to build electric car
US-based Ford Motor Company said it is in discussions with Anhui Zotye Automobile Co, a privately owned Chinese brand that specializes in electric vehicles, about setting up a joint venture to develop and manufacture electric cars in China.
The US automaker has entered into a memorandum of understanding with Anhui Zotye to explore the possibility of creating a Chinese brand aimed at producing all-electric cars for the local marketplace, which is the world’s largest for electric cars.
This move is in line with China’s aggressive push for more electric cars to reduce pollution in major cities. The government has supported sales with subsidies, and authorities are planning a quota system that would require automakers to produce electric cars, or buy credits from others that do.
Earlier this year, Volvo Motor announced plans to make electric cars in China for global sale starting in 2019. General Motors, Volkswagen AG, Nissan Motor and others also have announced plans to make electric vehicles in China.
China hosts BRICS Summit in Xiamen
Between September 3 and 5, leaders from Brazil, Russia, India, China, and South Africa (known collectively as BRICS) will meet in Xiamen. In addition to BRICS countries, China has invited leaders from Egypt, Guinea, Mexico, Tajikistan, and Thailand to attend the summit as a part of ‘BRICS Plus’ scheme. Leaders will discuss economic, political, and security cooperation during the summit.
Many analysts expect the summit’s discussions to focus on climate change and renewable energy initiatives, which are priorities for both China and India, as well as a BRICS credit agency to rival Western credit agencies, which is a priority for China and Russia. Others, however, will closely watch statements made by representatives from China and India; the two countries recently agreed to de-escalate a two-month border dispute.
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