Economy – No real restrictions to buy firms abroad – SAFE

Chinese companies hardly face any restrictions when they want to buy foreign companies abroad, according to Chen Bingcai, deputy director of the department of Capital Account at the State Administration of Foreign Exchange (SAFE). “We have abundant foreign reserves, so there are not really any problems.”
The issue has become important now the Beijing-based computer company Lenonovo intends to purchase the computer division of IBM.
Many more domestic companies intend to go abroad. “We encourage that development,” said prof Chen on Tuesday in Shanghai at the WTO forum organized by the Konrad Adenauer Stiftung and the Shanghai Institute of Foreign Trade.
The State Commission for Reform and Development and the Ministry of Commerce also have to look into the issue, but here Chen also did not see a problem.