Harvey Blackwood: China to Monitor Activities of Firms Abroad
Harvey Blackwood reports China to clamp down on the illegal activities of Chinese firms abroad
SHANGHAI, November 30, 2017 (Newswire.com) - According to Shanghai, China-based Harvey Blackwood, China’s state planner has announced the proposed framework for monitoring the international activities of Chinese companies and persons. The guidelines are designed to prevent illegal activities, including money laundering and tax fraud, which could damage the country’s reputation.
The NDRC (National Development and Reform Commission) stated in an announcement on its official website that the government would monitor occurrences of lawbreaking in China and overseas and that offenders would suffer the consequences.
The strategy is part of a broader scheme to regulate and monitor international business activities and investments as China’s role in the world’s economy gains traction. China’s role in the global economy is especially growing through its Belt and Road initiative.
An economist at Harvey Blackwood stated that in addition to illegal activities, the guidelines announced by the NDRC also specify that any activities which violate international conventions or go against foreign economic harmony would be noted.
The guidelines will also concentrate on observing cross-border monetary flows by maintaining that all international agreements are sound and disclosures are correct.
Last year, after its foreign currency reserves dropped significantly, China clamped down on capital outflows and the government was forced to defend the yuan against devaluation.
A Harvey Blackwood analyst added that the NDRC has revealed that individuals and companies that break rules will be punished in several possible ways. Regulatory bodies may limit access to official subsidies and deny them the right to sell state land or refuse their applications for international investments and foreign exchange acquisitions.
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Source: Harvey Blackwood