In order to avoid capital flight and control depreciation of its currency, Chinese authorities have approved new restrictions to clarify doubts about its economy.
Last month, the Chinese Government committed to establish a normalization plan for supervising finance and investment activities of government companies abroad. Its goal is to guarantee estate assets and improve their investments returns.
These plans, which have not yet been published by the Government, would imply a temporary veto, until September 2017, to investment agreements and purchases done by Chinese Companies, as well as more scrutiny on its operations abroad.
Beijing foresees to temporarily ban investments abroad that exceed 10.000 million dollars. Besides, it is also considering to stop real estate purchases abroad that exceed 1.000 million dollars.
During the first nine months of this year, China has beat records with direct investments abroad around 137.000 million euros. This frenetic activity is being cautiously seen by countries like the US and Germany, afraid that their national interests might be hurt.