China bans domestic investment in overseas gambling ventures

0
27

In China, the government reportedly instituted new regulations late last week that have been designed to stop the flow of money abroad by limiting outbound investment in a number of sectors including the gambling industry.

According to a report from the Gambling Insider news portal, Chinese nationals are now prohibited from investing in overseas ventures connected with gambling. Other forbidden areas include property, entertainment, hotels, film studios and sports clubs although no specific enforcement details have yet been released.

The new regulations from the Chinese State Council released on Friday reportedly ban domestic enterprises from “being involved in overseas investment that may jeopardize China’s national interests and security including output of unauthorized core military technology and products, gambling, pornography and other prohibited technology and products”.

Gambling Insider reported that the new prohibitions come amid concerns that domestic companies may be taking on too much debt in order to finance overseas investments. The Chinese State Council additionally purportedly declared that it hopes the embargo will lead to the “rational, orderly and healthy development of foreign investment while effectively guarding against risks”.

“There are great opportunities for our nation’s companies to embark on foreign investment but they also face numerous risks and challenges,” read a statement from the Chinese State Council cited by Gambling Insider.

Beijing earlier pledged that it would double the size of the country’s economy in the decade from 2010. As such, the Chinese State Council is reportedly moreover hoping that its policy change will help China’s “One Belt, One Road” agenda, which aims to invest billions of dollars in projects designed to improve the nation’s infrastructure and global trade links.

China bans domestic investment in overseas gambling ventures was last modified: August 22nd, 2017 by Adam Morgan