Shanghai Eases FDI Threshold
SHANGHAI, Jul. 27 – In an effort to further ease foreign investment into the city, Shanghai’s district-level officials will now be allowed to sign off on projects worth as much as US$100 million beginning August 1.
The move is part of Shanghai’s overall plans to become an international finance capital. The director of Shanghai Municipal Commission of Commerce (SCOFCOM), Sha Hailin, told Xinhua that foreign businesses have so far placed 16 regional headquarters, 10 R&D centers and five investment companies for the year.
SCOFCOM figures confirm that during the same period, the city was able to attract US$5.15 billion worth of FDI, an increase of 2.5 percent from the previous year.
Prior to the newest regulations, district officials could only approve projects worth as much as US$30 million.
Shanghai has not been spared from the effects of the global financial crisis. According to China Daily, the city reported a year-on-year growth of 5.6 percent in GDP for the first half of the year, lower than the national average increase of 7.1 percent during the same period.
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