If you build it, they will come.” So goes the often quoted line from the Hollywood film Field of Dreams, and in this issue of China Business Law Journal these words resonate with meaning. Our cover feature, The big build, explores infrastructure, and with the central government keen to build via its National Plan on New Urbanisation published in March, the question re foreign investment is surely: will they come?
The big build also explores China’s outbound aspirations in infrastructure. Being one of the world’s best exporters of infrastructure know-how, there are projects aplenty. So with all this expertise, one could ask why there are major challenges for inbound investment at home, not the least being the lack of an adequate regulatory framework, and the transparency issues accompanying this. IP licensing and project finance are also concerns. The domestic market has many opportunities, the most promising notably in healthcare, clean energy and tech, and education. Progress is being made, and not just via the Shanghai free trade zone. The Catalogue of Investments Subject to the Government Approval (2013) has narrowed the scope of investments subject to approval and the National Development and Reform Commission has revised its rules on foreign investment.
Public-private partnerships are an option that gives access to financing, but confusion remains over whether foreign investors are included in the local definition for these projects. There are other pitfalls, but one thing is clear. With policy doors opening, foreign investors will come to assist China’s big build – if they can be assured of adequate protections.
Time to open up takes a timely look at a major breakthrough for foreign investors in the form of foreign ownership of China’s hospitals. A pilot programme, which began in July and applies to seven cities and provinces, allows foreign investors to set up wholly foreign owned hospitals by way of greenfield establishments, or through the acquisition of existing hospitals.
Time to open up explores the standards required for this much needed investment, and also the potential challenges that lie ahead for foreign investors, not the least being that provincial counterparts of the national regulators are also authorised to pass detailed rules and guidelines for the establishment of wholly foreign owned hospitals. This is likely to mean inconsistencies in terms of requirements, procedures and timelines, which foreign investors will have to bear in mind when preparing to establish or acquire a Chinese hospital.
Finally, Africa always explores a relationship that is maturing rapidly, beyond oil and commodities. These primary resources are of course the mainstay of the economic relationship, but China’s leaders are keen to emphasise they are in Africa for the long haul, and that China’s investment in infrastructure that will improve livelihoods and futures is high on the agenda. We look at the hotspots for investment and what projects are drawing interest. We also explore the smaller African countries, examining the regulatory improvements underway there to attract China’s interest.
