China to Further Encourage Foreign Investors in Mining Sector
To further encourage investments and participation from overseas investors, China will be opening up its mining sector for the exploration and utilization of the development of shale gas. The Chinese government is attaching a great importance to the mining industry to assist in the country’s economic growth.
And the opening of the Shanghai Free Trade zone further showed that China is now stepping into the new stage of openness. To improve the convenience and efficiency of investments in the sector the Chinese government have simplify the approval process and the management of mining resources. Os of the moment social capital accounts for 70 percent of the mining exploration and investments as investors in China have diversified.
Foreign companies are showing a lot of interests in the mining industry but were held back by restrictive policies. Several foreign banks and steel companies are looking to invest in the mining sector in China s they will be providing technologies along with capital and expertise from which Chinese companies can benefit from. But these companies are still waiting for the policy to happen and experts are saying that it needs to be done as soon as possible.
In 2000 China opened up its mining sector to foreign companies after announcing a policy that allowed foreign investors to file for mining and exploration rights in china. and from 2002 to 2008 a surge of foreign companies came to China to invest in mining and during its peak around 200 companies have conducted operations in China.