China unveils easing of investment curbs

Beijing: China has announced sectors of the economy where it will ease foreign investment rules, with leaders stepping up efforts to portray the country as opening up as they prepare for a possible trade war with the United States.

The new "negative list" outlines key reforms in the financial sector while dropping restrictions in areas including the car industry, agriculture, infrastructure and mining.

The list released Thursday by the National Development and Reform Commission (NDRC), which will come into effect on July 28, will reduce the number of fields with limits from to 48, from 63 last year.

But it also notes some sensitive areas such as culture and national security will continue to be protected.

The announcement comes after the government unveiled changes earlier this year, which were seen as a nod to the United States and other western nations that have complained about lack of access to the world´s number two economy for years.

Among them are the cancellation of foreign shareholding caps for banks and allowing 51 percent control in some other financial fields for three years, after which restrictions will be scrapped.

However, critics say the policy comes with other limits that make only the largest foreign banks eligible for entry.