BEIJING: China’s Commerce Ministry said on Monday that China would sharply reduce restrictions on foreign investment access in 2017.
China will also step up opening up of sectors where foreign companies have strong investment interest and risks are under control, the ministry said on its microblog. No details were given on what restrictions will be changed.
Outbound investment
China’s non-financial outbound direct investment (ODI) is likely to hit 1.12 trillion yuan ($161.19 billion) in 2016 and foreign direct investment into China will total 785 billion yuan, Commerce Minister Gao Hucheng said on Monday.
The government will “promote the healthy and orderly development of outbound investment and cooperation” in 2017, Gao said in remarks at a conference that were published on the ministry’s website.
China’s ODI in November jumped 76.5 percent from a year earlier and it rose 55.3 percent in the first 11 months of 2016, the ministry’s data showed, as local firms continued to invest abroad amid a slowing economy and weakening yuan.
Earlier this month, China published draft foreign investment guidelines, which it said would “increase openness to the outside world.”
Based on Gao’s forecasts, non-financial ODI is set to surpass foreign direct investment into China by an unprecedented 335 billion yuan this year, amid worries about capital outflows.
For all of 2015, the ministry reported non-financial ODI of 735.1 billion yuan, and FDI of 781.4 billion yuan.
Gao said that in 2017, difficulties faced in maintaining a stable flow of foreign investment into China will increase, while sources of volatility for China’s outbound investment will rise along with risks, according to an interview with state media published Monday.
Beijing has announced a string of measures recently to tighten controls on money moving out of the country, including closer scrutiny of outbound investments, as the yuan skids and the country’s foreign exchange reserves fall to the lowest levels in nearly six years.
China will further enhance the competitiveness of its foreign trade and consolidate recent good momentum, Gao added.
No tax on carbon emissions
China has passed a law that levies taxes on pollution, but ignores carbon dioxide, one of the major contributors to global warming, according to the web site of the country’s highest legislative body.
The National People’s Congress (NPC) standing committee passed the law, the first to tax polluters, on Sunday, less than a fortnight after a red alert for smog left more than 20 cities in the country’s northeast choking under a heavy haze.
Polluters will be charged for contributing to air, water and noise pollution, according to a copy of the legislation on the NPC’s official web site.
But CO2 did not make the list, which includes air and water pollutants such as sulfur dioxide and sulfite, taxed at rates beginning at 1.2 yuan ($0.17) and 1.4 yuan ($0.20) per unit respectively.
It also stipulates a monthly tax ranging from 350 to 11,200 yuan ($50 to $1612) for noise pollution.
The Environment Tax Law will come into effect on January 1, 2018. China is the world’s largest emitter of greenhouse gases, due to its heavy reliance on coal to provide electricity to its population of 1.37 billion. The fuel has also contributed to the country’s severe smog problem.
Last week, cities across China’s northeast went on “red alert” for air pollution, triggering an emergency response that included taking large numbers of cars off the road and closing some factories.
The crisis also spurred a call by Chinese President Xi Jinping for the country to develop clean energy sources in order to reduce smog, Xinhua reported.
China to reduce restrictions on foreign investment access in 2017
China to reduce restrictions on foreign investment access in 2017
Apparel Group expands Saudi presence with 25 new brands
RIYADH: Apparel Group is seeking to strengthen its presence in the Saudi market through digital commerce expansion, adding 25 new brands to its portfolio, and plans to grow its store network by 200 outlets this year to reach a total of 1,000, CEO Neeraj Teckchandani told Al-Eqtisadiah.
He noted that Saudi Arabia has been one of the group’s key markets since entering in 2007, currently operating more than 800 stores across the Kingdom. He added that the group’s current expansion plans include opening over 200 new stores this year, following 150 openings last year, with expectations that Saudi Arabia will become the group’s largest market in terms of footprint and revenue share in the coming period.
Teckchandani added that the group continues to invest in e-commerce through its digital platform, SixFeet, launched in 2016, which contributed 10 percent of total group sales, noting that plans are underway to gradually increase this share in 2026 through technology investments and enhanced digital shopping experiences.
The group is also preparing to launch a unified SuperApp this year, integrating its loyalty program, the SixFeet platform, and all digital assets into a single application to accelerate e-commerce growth, improve customer experience, and increase operational efficiency.
New fashion and restaurant brands
The CEO said the new brands added to the group’s portfolio cover fashion, footwear, restaurants, and entertainment, including Footasylum, FitFlop, and Clarins, as well as Bobbi Brown, Wagamama, Ivy Asia, and Punjab Grill.
He noted that some brands have already opened in Saudi Arabia, with further expansion planned this year and next.
85 brands under the group
Apparel Group manages 85 global brands and over 2,500 stores across Saudi Arabia, the UAE, Bahrain, Qatar, and Oman.
The company has also expanded strategically into India, South Africa, Singapore, and Indonesia, as well as Thailand, Malaysia, and Egypt.
Its portfolio includes internationally renowned fashion, footwear, and lifestyle brands such as Tommy Hilfiger, Charles & Keith, Skechers, Aldo, Crocs, Calvin Klein and Aéropostale. The group also operates food and lifestyle brands including Tim Hortons, Jamie’s Italian, and Cold Stone Creamery, alongside beauty labels such as Inglot and Rituals. R&B, its in-house label, is currently the fastest-growing brand in the region.
Securing locations in new centers
Teckchandani pointed out that the Saudi market is witnessing rapid expansion in the shopping mall sector, with 30 new centers expected to open by 2030, affirming that the group has secured strategic locations in several of these projects and aims to expand its store network in parallel with real estate growth in the retail sector.
He added that the group has also invested in operational infrastructure within Saudi Arabia, establishing a main distribution center in Riyadh to support supply chains, relocating to its new regional headquarters in Majdoul Tower, and expanding its logistics arm, “Connect Logistics,” as well as “Shopfit Interior,” a company specializing in store fit-outs.
He added that the parent company is prioritizing investment in advanced technology and AI, along with launching the unified SuperApp in the second quarter of 2026, and has appointed a group-level chief digital officer to support this phase, with results expected in the short to medium term.
Saudi expansion drives growth
Teckchandani emphasized that Saudi Arabia represents the group’s main growth engine in the coming years, supported by strong consumer demand, rapid development of shopping centers, and increasing contribution from digital commerce.
Apparel Group’s expansion comes amid a broader retail sector boom in Saudi Arabia, driven by rising consumer spending and accelerated development of malls under Vision 2030.
The retail sector is one of the largest non-oil contributors to GDP, with increasing growth in digital sales channels as companies integrate e-commerce with traditional stores to enhance operational efficiency and expand market share.
Major retailers are seeking to capitalize on population growth and rising purchasing power, alongside the expansion of hospitality and entertainment projects, boosting demand for global brands. Investments in logistics infrastructure and digital transformation have also become critical competitive factors, especially as e-commerce accounts for a growing share of total retail sales.
