China’s FDI obstacle course

Foreigners are complaining about China’s FDI approval process for good reason: it’s onerous, arbitrary and vastly different to what Beijing seeks from Australia.

The requirement that investments from China over $248 million be referred to the Foreign Investment Review Board for approval is reportedly a sticking point for Australia-China Free Trade Agreement negotiations. Beijing wants the review-free threshold raised to $1 billion in line with concessions offered to American and New Zealand investors, arguing that the review system is discriminatory against China.

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