China tweaks policy to discourage FDI for export

BEIJING, Nov 7 (Reuters) China will no longer give blanket policy support to export-orientated foreign direct investment, the National Development and Reform Commission said on Wednesday.

The planning agency, striking a balance between nurturing domestic industries and extending a welcome to outside investors, said it would be cautious about opening up some strategic and sensitive industries.

In a policy update carried on its Web site, the NDRC said investment in projects to mine scarce or non-renewable minerals would no longer be encouraged.

By contrast, the NDRC said it would encourage foreign investment that will help China to protect the environment, cut pollution and develop renewable energy.

Investment in high-technology, advanced materials and equipment manufacturing will also be welcome.

The statement marks the latest policy initiative by Beijing to upgrade the structure of its economy, rein in exports and direct investment to priority sectors.

REUTERS BJR RN1208