In the News: Decline in US Outbound; New Rules for Foreign Banks, Insurers; and Tencent's Game Licence Failure

May 13, 2019 | BY

Marilyn Romero

For the second year, Chinese FDI into the U.S. falls; The CBIRC releases 12 new measures planned to ease foreign banks and insurers' investments; and Tencent's PlayerUnknown's Battlegrounds game fails to get China licence.

China investment

Crackdown on Chinese investment triggers US outbound drop

Chinese foreign direct investment into the United States dropped for the second straight year in 2018, falling 83% to $5 billion, according to New York-based nonprofit National Committee on U.S.-China Relations. U.S. outbound fell largely because of the Trump administration's crackdown on investment from China, which prompted investors to shy away from the U.S. and move into venture capital, or into other parts of the world. NCUSCR said in a report that the Trump administration has toughened its oversight of Chinese investment in the wake of a flurry of Chinese acquisitions viewed as posing potential national security threats.

More from CLP: CFIUS Law Reform Imposes Serious Threats to Chinese Investments in the US; China braces for rough seas in global M&A; New Tax Credit Rule Promotes Outbound Investment; National Development and Reform Commission, Measures for the Administration of Outbound Investment by Enterprises

CBIRC releases 12 measures to further open banking, insurance sectors

The China Banking and Insurance Regulatory Commission, or CBIRC, has released plans for a dozen new measures to further open up the Chinese banking and insurance sectors to foreign participation. Key measures include the removal of ceilings on equity by a single foreign-invested bank in a Chinese commercial bank; cancellations of asset holding requirements for foreign banks and insurance companies; the removal of a 30-year trading history requirement for foreign insurance brokers; and the broadening of eligible financial institutions and the activities that they can undertake.

Financial regulators will “uphold consistency in treating domestic and foreign [parties], provide fair treatment to domestic and foreign actors, provide equitable treatment, and form 'multi-victory' circumstances,” said Guo Shuqing, CBIRC chair, commenting on the measures.

More from CLP: Foreign Insurers Key to Solving China's Looming Pension Crisis; China Banking and Insurance Regulatory Commission, Decision on Repealing and Revising Certain Rules and Regulations; Legislation roundup: Wealth management, foreign banks and cross-border e-commerce

 

Tencent fails to get China approval for popular game PUBG

Chinese tech giant Tencent has dropped its highly popular PlayerUnknown's Battlegrounds (PUBG) mobile game in China after failing to get commercial licences from Chinese authorities. Although, the game is already a major hit internationally, Tencent still has not monetized PUBG in China because it has not received the requisite licence. The company has waited for over a year for approval to earn money on PUBG via in-app purchases, but Beijing halted all commercial approvals for online games last year partly due to concerns over the addictive and violent nature of video games. In a post on the game's official account on China's Weibo platform, Tencent said it would end testing for PUBG. It also said it has launched the anti-terrorism-themed “Game for Peace” game, for which it gained monetization approval in April.

More from CLP: IT regulator reinforces order in mobile app market; Ministry of Culture, Measures for the Administration of For-profit Online Performance Activities; Unlocking the Cloud

 

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