Source: CCTV.com

07-19-2008 13:39

China's top economic planner has announced much more stringent checks on foreign direct investment, to curb illicit inflows of speculative "hot money".

The National Development and Reform Commission has ordered local branches to implement existing regulations. And this means large foreign investments now need approval from the central agency, and not just from local authorities. This latest move from the NDRC follows recent action taken by the Foreign Exchange Regulator, to strengthen monitoring of export revenues.

This requires that such funds are transferred to temporary accounts, so that officials can verify that they are the result of actual trade transactions.

 

Editor:Liu Fang