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Government to Boost Overseas Investment

The fast-growing overseas investment by Chinese companies is expected to maintain its momentum as the Central Government has streamlined procedures and decentralized approval rights.

The State Development and Reform Commission (SDRC) had raised the approval ceiling for provincial authorities, the Shenzhen Economic Daily cited a commission spokesman as saying over the weekend.

The ceiling had been raised to US$30 million from US$1 million for investment in natural resources, such as oil fields and metal mines, the spokesman said.

Investment above the figure would be subject to nod from the SDRC but the rest could be approved by provincial authorities, he said.

Last year, the State Administration of Foreign Exchange allowed selected provincial authorities to approve overseas investments of up to US$3 million from US$1 million.

The SDRC also pledged to further simplify investment procedures, saying it would exempt domestic investors from submitting feasibility reports.

Encouraging domestic firms to tap overseas natural resources is high on the government's agenda as the country grapples with increasing energy shortages.

(Shenzhen Daily December 6, 2004)

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