Chamber News

● The depreciation of the renminbi below 7 to the US dollar last week marks a significant development in the US-China trade war. ● In addition to increased production costs, companies may see a slight rise in the rate of inflation. ● Signals from Beijing indicate that after the initial drop, the renminbi is unlikely to devalue too dramatically, unless further developments in the trade war push Beijing towards a more aggressive monetary policy.

Tuesday 30th July marked the implementation of China’s revised Negative and Encouraged Lists for foreign investment by the National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOFCOM). These effectively act as a manual for foreign businesses in China to understand which sectors they are prohibited and restricted from investing in by the authorities, and which enjoy incentives.