<p>Chinese investors can again buy offshore assets for yuan, and foreign investors were finally allowed to own a controlling stake in local companies. The issue of lifting restrictions on property rights in Chinese banks is also being discussed. Together, this makes China an attractive jurisdiction for investment in the coming years.</p><div><h2><strong>China allowed to buy offshore assets</strong></h2></div><p>In 2015, Chinese authorities banned investors from China to buy offshore assets for yuan. At that time, the opinion arose that this was too conducive to the withdrawal of funds from the country's economy. However, in 2018 a decision was made to unfreeze such operations.</p><p>In other words, the Chinese will be able to use the national currency to acquire foreign assets, which potentially has a positive impact on the yuan.</p><p>In addition, the Chinese authorities have allowed interbank lending to financial institutions from offshore. Again, it's assumed that they will borrow in yuan, thereby attracting foreign investment in the economy of the country.</p><p>Foreign partners can also rely on their own Chinese payment system, which within the country replaces SWIFT. This will simplify trade and accelerate the necessary procedures.</p><p>According to experts, all these innovations and indulgences, China pursues several goals:</p><ul><li>Make life easier for investors and increase the inflow of investments into the economy, which weakened due to excessive control by the state, the high direct and indirect taxes, etc.;</li><li>Withdrawing the yuan to the international level as a reserve currency - they are already actively used in the region, plus recently launched trading in oil denominated in RMB (only for the first day they concluded deals for 2.7 billion dollars);</li><li>De-dollarization of the economy - China wants to reduce dependence on American money and gain leverage over the United States, which recently unhesitatingly puts unimaginable conditions in the direction of its biggest trading partner and the most dangerous strategic rival.</li></ul><p>Despite the positive mood, the yuan has problems. In particular, the fact that he is not traded on the free market. This limits its use in the world. However, China itself actively promotes transactions in RMB and involves international partners in trade.</p><p>Another problem of the yuan is a trade war that begins between China and the United States. The States have already introduced duties on steel and aluminum (however, as for other countries in the world, including the EU and Canada), they plan to impose duties on other types of goods. China has prepared a response and at the moment difficult negotiations are under way. Something suggests that with the current ruling elite, there is a great chance of escalating trade restrictions and suspicions.</p><div><h2><strong>The party said to return investors!</strong></h2></div><p>Due to excessive regulation over the past 2 years, investors have started to leave China. Money flows went to competitors in India and Indonesia, where everything is as much labor, low prices and easier to do business.</p><p>Of course, the Party can not allow this, because China has ambitious plans for both economic development and international domination. And all this requires money.</p><p>According to experts, it is for this reason that in early May China decided to admit foreigners to hold a controlling stake in the Chinese company. Previously, foreign investors could own only 49%, and now - 51%. Each specific investor can own 25% and talk about a gradual increase in the threshold to 30%.</p><p>Chinese and foreign insurance and brokerage companies also rank in rights. This opens up new opportunities for business in China, albeit far from all that are available in states with free market economies.</p><p>In addition, the possible removal of restrictions on ownership in Chinese banks is being discussed, which, according to experts, will be a revolution in the market.</p><p>Perhaps this, as well as a tax maneuver, will help slow the outflow of funds from China to Singapore and Hong Kong. Despite the population's restrictions on the withdrawal of only $ 50,000 per year, China loses hundreds of billions of dollars, which settle in midshore and offshore. Chinese investors acquire assets around the world. They are interested in everything: real estate, companies, gold, second citizenship. According to reports, Chinese investors are most active in acquiring the second passports of the Caribbean states with the help of investments.</p><p>China, despite certain difficulties, continues to grow and develop. Delays for investors (Chinese and foreign) allow us to hope that we will be able to make money on this growth. Should I immediately register a company in China? The answer depends on your goals, objectives and type of business. Despite the proposals from China, Singapore and Hong Kong for most of the business remains preferable. You will be able to use these jurisdictions for trading companies, for R &amp; D, for logistics. In addition, for these midshore at times easier to open bank accounts around the world. Especially in comparison with classic offshore.</p><p>The bank account is an essential component for business, whether it is in China or on St. Kitts and Nevis. Often it is the bank account that determines where to open a company. Suppose, if you need an account in the EU, then not all classic offshore European banks will accept with open arms. This point should be taken into account when selecting an account and a foreign company.</p>