China Seen Planning Overhaul of Foreign Investment Rules

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China is proposing an overhaul of its foreign-investment rules with a draft law that could mark the biggest change in decades to the way global companies do business in the country.

The Commerce Ministry this week put forward a draft that could unify regulations overseeing foreign investment in China, scale back restrictions and begin regulating the variable interest entitiesBloomberg Terminal that are commonly used to circumvent foreign-ownership limits. The ministry will accept feedback on the plan from the public until Feb. 17.